Gold Investment: Avoid Tax Traps, Maximize Returns with Smart Choices

• Gold has seen an 80% return in the last year, attracting many investors.
• Choosing the wrong investment method can lead to 30-50% of profits being lost to taxes.
• Sovereign Gold Bonds (SGBs) are tax-free on maturity gains for long-term investors, plus offer 2.5% annual interest.
• Gold ETFs and Mutual Funds incur capital gains tax (12.5% LTCG after 12/24 months respectively) or slab-based tax if sold earlier.
• Physical and digital gold are least tax-efficient, with 3% GST on purchase and capital gains tax on sale.

Why It Matters: Selecting the right gold investment option is crucial to maximize returns and minimize tax liabilities.