The Gold Monetization Scheme (GMS) is an initiative by the Government of India aimed at mobilizing the idle gold lying in households and institutions across the country. Instead of keeping gold unused, this scheme allows you to earn interest by depositing it with the government, which then puts the gold to productive use. How Does the Gold Monetization Scheme Work? Under the Gold Monetization...
August 2024
Sovereign Gold Bonds (SGBs) have emerged as a popular investment option for those looking to invest in gold without the hassle of handling physical gold. Apart from offering a regular interest payout, SGBs come with several tax benefits that make them an attractive choice for investors in India. What Are Sovereign Gold Bonds (SGBs)? Sovereign Gold Bonds are government securities denominated in grams...
Why Gold is a Popular Investment Gold has long been a favored investment, especially because it tends to move in the opposite direction of the stock market. When the stock market declines, the demand and price for gold typically rise. For many Indians, gold is not just an investment; it also holds cultural and emotional significance. However, mixing personal use and investment objectives can lead to...
The Finance Minister recently reduced the customs duty on gold from 15% to 6%. Additionally, the holding period for long-term capital gains tax on gold has been shortened from 36 months to 24 months. The tax rate for long-term capital gains on gold has also been lowered from 20% with indexation to 12.5% without indexation. Shift to Gold-Related Instruments for Investment Market experts suggest that...
SGB Investors Disappointed by Budget 2024 Customs Duty Changes Many Sovereign Gold Bond (SGB) investors, particularly those whose investments matured on August 5, 2024, were left disappointed by the Budget 2024 announcement regarding customs duty on gold. The government reduced the customs duty on gold from 15% to 6%, leading to a drop in gold prices. This decline was influenced by both the reduction...
When selling property in India, Non-Resident Indians (NRIs) can significantly reduce their tax burden on capital gains by utilizing specific exemptions under the Income Tax Act. Here’s how NRIs can save on taxes by leveraging Section 54, Section 54EC, and Section 54F. Exemption Under Section 54: Reinvest in Residential Property Eligibility and Applicability:Section 54 provides an exemption from...
In property transactions involving a Non-Resident Indian (NRI), the buyer holds the responsibility of deducting the Tax Deducted at Source (TDS) from the sale proceeds and ensuring it is transferred to the NRI seller. This TDS deduction is a crucial step in complying with Indian tax laws. The Buyer’s Responsibility in TDS Deduction The buyer must deduct the applicable TDS amount from the payment...
When Non-Resident Indians (NRIs) sell property located in India, they are subject to taxes on the capital gains earned from the sale. These taxes are governed by specific rules under the Income Tax Act, and understanding the applicable Tax Deducted at Source (TDS) rates is crucial for a smooth transaction. Understanding TDS on Property Sales for NRIs TDS (Tax Deducted at Source) is a mandatory...
Overview of TDS on Property Transactions In India, whenever a property is bought or sold, Tax Deducted at Source (TDS) must be deducted by the buyer before making the payment to the seller. This deducted TDS amount must then be deposited with the Income Tax Department by the buyer. This rule equally applies to transactions involving Non-Resident Indians (NRIs). TDS Rate for Resident and Non-Resident...
Understanding TDS on Property Purchases from NRIs In India, when purchasing property from a Non-Resident Indian (NRI), the buyer is required to deduct Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act. This TDS is a crucial component in property transactions involving NRIs. TDS Rates for Different Scenarios Long-Term Capital Gains (Property Held for More Than Two Years): The...