Gold Rate In Market – Gold Price Today
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Difference between KDM and Hallmarked Gold in Davanagere
Gold has a different variety in In India, and it depends on the kind of metal it is mixed with. Given the metal’s everlasting worth, there are a few things to keep in mind while acquiring gold. It is critical to understand the purity of the gold you are purchasing. When purchasing gold ornaments, consider various factors in addition to purity, such as making charges, whether man-made or machine-made, weight, wastage percentage levied by the jeweller, buy back terms on the gold ornaments, you are purchasing, and hallmarking or certification of purity, among others. When it comes to ensuring the purity of gold you must know the difference between KDM Gold & Hallmark Gold.
KDM Gold are essentially gold that is mixed with cadmium. Traditionally to make detailed designs and definitions on a jewellery copper was soldered to the gold. However, given that the ratio of copper added to it was nearly 40% it soon lost its practicality. Eventually cadmium started making the rounds as the preferred element to be soldered with gold. Since it had a very low melting point it was an easier metal to deal with and also only 8% cadmium was enough to make a gold jewellery thus retaining 92% pure gold. But it was found that KDM gold was hazardous as the element itself was very harmful for the artisans who used to work with it and also the wearer. Thus BIS has banned KDM Gold on account of it being hazardous.
Hallmark Gold is nothing but the warranty or certification of the purity of gold used in the jewellery. Many institutions in India are assigned to certify the jewellery for its purity. A hallmark gold can range between 23 carat and 18 carat.
GST Impact on Gold Rate
Before the implementation of Goods and Service Tax (GST) in India Gold was subjected to 1% service tax along with 1% VAT tax, that was a total of 2% tax. However, when GST was first introduced for Gold the making charges were subjected to 18% charge, which made a huge difference to the overall price of the gold. After, protest and government consideration the rate is distributed and reduced. With the new tax implementations in place, one has to include 3% GST on the value of the gold along with the 5% GST making charges.
The above change still has not changed the scenario of gold market in India, which remains one of the costliest nation to buy gold. Apart from this, a 10% import duty is also levied on gold imported from outside the country, and since a major portion of the jewellery manufacturing is dependent on the imported gold, the prices are soaring high. The vendors find it difficult to acquire raw gold in a decent quantity given the rates of taxes and that has resulted to buying raw gold from unregistered sources. The gold market is affected undoubtedly but the demand has not diminished to its totality. Hence, it may be presumed that the relief on GST rates may not possible in the near future.
Taxes Applicable While Buying/Selling Gold in India
In terms of physical gold, taxes on selling gold is applicable depending upon the duration that you have held them. For both short term and long terms taxes applicable are different. Long-term capital gains are subjected to 20% tax and an extra 40% cess charge. Any applicable extra charge is also levied at the time of final transaction, also, if you buy gold worth Rs. 2 Lakh or more than an extra 1% TDS is also applicable. While buying physical gold a 3% GST is levied and the price of jewellery include an extra 5% making charge.
Digital gold which is rising in popularity when it comes to investments scheme are also subjected to the same kind of taxes as for physical gold if you hold them for a period of 3 years or more. The tax of 20% along with cess and extra charges, if applicable, is not levied on digital gold held for less than 3 years.
Gold ETFs and Gold Mutual Funds are taxed at the same rate as digital gold.
Sovereign Gold Bonds are treated differently than other gold investments, since there is interest of 2.5% per annum the same is added to the principal value of the gold and hence taxed. The tax levied is dependent on the tax slab that the person falls under.
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