Tips to save IPO listing gains tax!
In the years 2023 and 2024, many IPOs brought huge earnings for the investors. But tax also has to be paid on this! What is the tax rule on booking listing gains from IPO? How can tax liability on listing gains be reduced? How will the tax be calculated on selling IPO shares?
Investing in digital gold is in vogue these days. A lot of people are investing in it. It is like the money that is lying in your digital wallet. It is something that you own but is not in your pocket. And what’s great is that you can start investing in it with just 1 rupee. But how safe is investing in it and how much tax is levied on it? Let us understand a bit more about digital gold investments in the following 9 points-
1. Easy to buy
Buying digital gold has become so easy nowadays that people are buying it through mobile apps. It is also attracting people as there is no budget constraint on buying digital gold.
2. No worries about purity and safety
When we buy gold, we worry about its purity, but this is not the case with digital gold. Also, it does not have to be protected. That means complete certainty.
3. Full and prompt payment
As soon as you sell digital gold, you get all the money immediately. So, you do not have to do anything with anyone, nor do you have to worry about money.
4. GST is also applicable
You must pay 3 percent GST on digital gold. Suppose you have taken digital gold of one thousand rupees, then 30 rupees GST will be deducted, and you will get gold worth Rs 970.
5. One-time fee
While buying digital gold, you have to pay a one-time charge. This charge includes trustee fees and transaction costs in addition to maintenance charges, processing charges, insurance, and storage charges. Apart from this, you may also have to pay a delivery fee for taking physical delivery of Digital Gold.
6. Tax liability
When you sell digital gold, the tax liability on long-term capital gains is the same as that of physical gold. That means 20 percent tax plus cess and surcharge. But if the digital gold remains with the customer for a period of less than 3 years, then the return from its sale is not directly taxed.
7. Charges applicable if keeping digital gold for more than five years
The issue with digital gold is that you cannot keep it with you for more than 5 years. If you do, some charges are applicable.
8. Absence of regulation
There is no regulation to oversee digital gold. As of now, government bodies like SEBI and RBI are also not regulating it.
9. Government to soon take a decision
Like cryptocurrencies, all kinds of promises are being made to investors regarding digital gold. The government is keeping a sharp eye on all this, and we can soon expect some action on it.