As you all know that, as per the observation of economists, according to the current trend, it seems that the yellow metal is performing better as an investment option in comparison to mutual funds, equities, real estate, and fixed deposits. The weak global economic outlook for the entire year is might be the reason why gold prices are surging. The yellow metal is considered as a financial instrument that does not erode in valuation during periods of economic turbulence. Many global investors are looking for safer investment options including gold as fears over a recession continue to grow.

Therefore today I am discussing year wise Price of Gold in India in last 56 year alongwith the detailed discussion on its taxability under Income Tax Act and various forms in which investment in Gold can be handled.

Gold

Taxation of GOLD

1. If Gold or Gold ornaments is received as gift

Gold and ornaments received on the occasion of marriage is not taxable. Further, valuables and gifts received on any other occasion from the relatives should be kept on record as regards when and how they are received i.e. list should be prepared. Don’t forget income tax department may enquire about when and how these valuables were received. If these records are kept properly, then income tax will not be required to be paid. Further gifts of more than Rs. 50,000 received from other than relatives are taxable.

2. If Gold or Gold Bars held as assets and are sold then how it will tax under Income Tax?

If gold or gold bars held as assets, are sold within three years then short term capital gain on the profit is levied at normal rates applicable to individuals and if sold after three years then long term capital gain is levied on the profits @ 20%.

3. What is Gold ETF and how taxes are charged on it?

“Gold ETF” means “Gold Exchange Traded Funds.” Purchase and sale of ETF is carried out through stock market. In this option there is no risk of handling gold. However taxation of Gold ETF is same as selling gold jewellery. It means if Gold ETF is sold after 36 months from the date of purchase then Long term capital gain tax is levied @ 20% on the profits and if it is sold within 36 months then short term capital gain tax on the profits will be levied at normal slab rates.

4. How sovereign gold bonds (SGBs) taxed under Income Tax?

taxation of returns from SGBs is different. SGBs earn an interest of 2.5 per cent per annum. Interest earned from these bonds will be taxable under the head Income from other sources and taxed at the rates applicable to your income. The maturity amount that you will receive after 8 years is linked to the gold prices prevailing at that time in the market. In the case of SGBs if any capital gains arise at the time of maturity, then those will be exempted from tax. However, as an investor, you have an option to exit from the scheme post the expiry of lock-in period after five years. If you exit from the scheme after five years, any capital gains arising from such a sale will be taxed as long-term capital gains at 20 per cent with indexation. However, TDS provisions will not be applicable at the time of maturity or sale of the bonds.

5. What is digital gold and how its tax under income tax

Many banks and brokerage companies, in partnership with MMTC, offer digital gold through their apps. Investors can invest very small amount of money in gold through this route. Income tax on digital form of gold is similar to what is applicable to the physical form of gold or gold ETFs.

Year wise Price of Gold in India:

Year Price (24 karat per 10 grams) Year Price (24 karat per 10 grams)
1964 Rs.63.25 1992 Rs.4,334.00
1965 Rs.71.75 1993 Rs.4,140.00
1966 Rs.83.75 1994 Rs.4,598.00
1967 Rs.102.50 1995 Rs.4,680.00
1968 Rs.162.00 1996 Rs.5,160.00
1969 Rs.176.00 1997 Rs.4,725.00
1970 Rs.184.00 1998 Rs.4,045.00
1971 Rs.193.00 1999 Rs.4,234.00
1972 Rs.202.00 2000 Rs.4,400.00
1973 Rs.278.50 2001 Rs.4,300.00
1974 Rs.506.00 2002 Rs.4,990.00
1975 Rs.540.00 2003 Rs.5,600.00
1976 Rs.432.00 2004 Rs.5,850.00
1977 Rs.486.00 2005 Rs.7,000.00
1978 Rs.685.00 2006 Rs.8,400.00
1979 Rs.937.00 2007 Rs.10,800.00
1980 Rs.1,330.00 2008 Rs.12,500.00
1981 Rs.1,670.00 2009 Rs.15,105.00
1982 Rs.1,645.00 2010 Rs.16,320.00
1983 Rs.1,800.00 2011 Rs.20,775.00
1984 Rs.1,970.00 2012 Rs.28,040.00
1985 Rs.2,130.00 2013 Rs.29,610.00
1986 Rs.2,140.00 2014 Rs.28,470.00
1987 Rs.2,570.00 2015 Rs.26,245.00
1988 Rs.3,130.00 2016 Rs.28,340.00
1989 Rs.3,140.00 2017 Rs.28,950.00
1990 Rs.3,200.00 2018 Rs.30,680.00
1991 Rs.3,466.00 2019 Rs.31,640.00

 Republished with Amendments

More Under Income Tax

39 Comments

  1. Subramanian V says:

    For calculation of Capital Gains for Gold Ornaments sold in Aug 2019, I would appreciate if you can kindly inform me:
    1. Is the base rate of Gold of 31.3.2001 or 31.3.2002 is to be taken for calculating the gain?
    2. The Gold rates from 2001 to 2010?
    3. For ornaments purchased in July 2005 for which no bill is available, should we take the rate as on 31.3.2004 or 31.3.2005?
    4. The Cost inflation Index show the Financial Year. Will it be ok if I adopt the base index for the corresponding Financial year.

  2. Bharat K Shah says:

    Gold Valuation FY 2013-2014
    Silver Valuation FY 2013-2014
    Diamond Valuation FY 2013-2014

    Gold Valuation FY 2014-2015
    Silver Valuation FY 2014-2015
    Diamond Valuation FY 2014-2015

    Plz Send Rate For Wealth Tax purpose

  3. p misra says:

    giving information about 24k gold is not correct to calculate value of jwellery …. which is mostly 22k gold. what is needed is 22k gold rates. we can use this (24k) only when we have bought pure gold as investment (during festivals for examples). correct me if i am wrong.

  4. Jayant Lakhkar says:

    Thank you for extensive information on prices of gold and silver from 1981. Another impoartant component of an assessee’s wealth is his residential property additional to the holding allowed as per wealth tax act.

    I am interested in knowing where I can get the 1981 ready reckoner prices (when ready reckoner prices were introduced for the first time) of flats in Mumbai.

    I will be thankful for guidance on where to get the 1981 ready reckoner prices of flats in Mumbai.

  5. pravin says:

    Ornament gold rate (22 carat) is Rs.2822 per gm on 31.3.2014 (Economic Times).

    A correction to be made in the article. From AY 2014-15, Form O-8A or Form O-8 is not required to be attached with Form BB (WT return.

  6. Hussain says:

    On date 08/03/2014 today, i m doing calculation of wealth tax for AY 2013-2014. how can arrive the value of silver if i assessee have silver 15kg. show the calculation

  7. Surya says:

    Iam planning to buy gold, I have following queris about purchaging and maitanining
    1.Suppose if i buy gold at 0.5g for each month and after sometime i wanna exchange that gold to lumsum,what are the rules and regulations for this and what are companies offering it.
    2.Howmuch gold we can wear in dialy life as per GOvt Income tax Rules?
    3.Few jewellers are giving on EMI basis ,can we take or not to take ?

  8. pravin says:

    i think rates for 2009-10 is wrong as per tax publishers gold rate 15,260 & silver 27665 i wnated to know what is the gold & silver rate as on 31.03.2011

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