Explained: How capital gains from different forms of gold are taxed

When you give old ornaments to a jeweller to buy new ones, you might need to pay capital gains tax depending on how the transaction is structured. Such a transaction can happen in two ways. One, the jeweller uses the existing gold from the customer to make new jewellery and bills the individual only for the making charges. Second, the jeweller will value the jewellery. The customer can then purchase a new set of the same value or pay the difference between new and old jewellery. In the second case, where the jeweller would issue a new bill for a fresh purchase, the consumer will need to pay.....

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