As per Hindu tradition, gold investment on the occasion of Diwali and Dhanteras is considered auspicious. The demand for physical gold jumps manifold every year during this festive season. However, the smart investors have now started investing in digital gold to enjoy the multiple tax benefits.
If you are also planning to buy gold in the upcoming days, have a look at the expert suggestions on the digital gold investment to enjoy its multiple benefits.
The physical form of gold has a problem of space, sometime investors have to pay for bank lockers to keep it safe. But investing in digital gold does away with all such storage issues, as the gold is kept in the digital form which can’t be stolen.
The purity of gold is a prime concern for investors. However, the customers buying digital gold can choose the purity of the metal at the time of investing. In digital gold investment, the investing platforms offer several options such as 18-carat gold, 22-carat gold and 24-carat gold.
Several digital payments apps are offering the facility to invest as little as they want to kickstart their investing journey even from Rs 1.
Investors can also choose the option to convert their digital gold to physical gold whenever they want. Most of the investment platforms provide the home delivery facility to their customers. They will deliver the gold to your home on a minimum investment.
Investors selling digital gold within 36 months of purchase don’t have to pay tax on the gains. This makes digital gold one of the most tax-friendly investing options. However, if an investor sells gold after 36 months, then capital gains tax is charged at 20% on returns, along with 4%.
Phillip Peters is an independent journalist, entrepreneur, digital marketer and press release publisher. He has a soft spot for technology, gadgets, cryptos and writing about health and politics. He also loves travelling the world! Phillip has been working with KukaUSA full time since September 2018.