Author: Finance News India

1. Physical Gold Owning gold in its physical form, such as coins, bars, or jewelry, is a common choice. But how does this affect your taxes? 2. Gold ETFs Exchange-Traded Funds (ETFs) backed by gold can be a convenient way to invest. How do they fit into the tax puzzle? 3. Gold Mining Stocks Investing in gold mining companies can provide indirect exposure to the precious metal. But what are the tax implications here? 4. Gold Certificates These certificates represent ownership of gold without the need for physical storage. How are they taxed? 5. Digital Gold With the rise of…

What are Sovereign Gold Bonds (SGBs)? SGBs are government securities denominated in grams of gold. They provide an excellent alternative to owning physical gold. SGBs offer safety, liquidity, and even an interest rate, making them an attractive investment option. So, what’s the tax story here? Purchase of SGBs and Tax Benefits When you buy SGBs, you invest in a gold bond issued by the Reserve Bank of India. The good news is that there is no Goods and Services Tax (GST) on the purchase of SGBs. Plus, you get a 2.50% interest per annum, which is taxable. The interest you…

1. What are Sovereign Gold Bonds (SGBs)? Sovereign Gold Bonds, as the name suggests, are government securities denominated in grams of gold. They offer an alternative way to invest in gold compared to buying physical gold. These bonds are issued by the Reserve Bank of India on behalf of the Indian government. When you invest in SGBs, you essentially lend money to the government, and in return, they promise to pay you the prevailing market price of gold at the time of redemption. 2. How do SGBs Work? Investing in SGBs is straightforward. You can buy them in both demat…

Why Invest in Gold Coins? Gold is more than just a shiny metal; it’s deeply ingrained in the Indian culture. For centuries, gold has been a symbol of wealth, prosperity, and tradition. Whether it’s for weddings, festivals, or investments, gold is always in demand. It’s often seen as a hedge against economic uncertainties, making it a reliable investment choice. Types of Gold Coins in India When it comes to gold coins, you have a variety of options. The most common types are 24-karat, 22-karat, and 18-karat gold coins. The purity of gold is the key differentiator here. 24-karat gold is…

What Is a Gold Loan? Understanding the Basics A gold loan is a financial product that allows you to borrow money by using your gold jewelry or ornaments as collateral. It’s a secured loan, which means that in exchange for the loan amount, you pledge your gold, and the lender holds it as security until you repay the loan. How It Works The process is quite straightforward. You bring your gold items to a lender, who assesses their value based on purity and weight. The lender then disburses a loan amount based on the gold’s value. You repay the loan…

1. Understanding Gold and Fixed Deposits Gold and fixed deposits are two vastly different investment options. Gold is a tangible asset in the form of jewelry or coins, while fixed deposits are financial instruments offered by banks. Both have their merits, but it’s essential to understand how they work before you decide. 2. Risk and Security When it comes to risk, gold and fixed deposits couldn’t be more different. Gold prices can be volatile, influenced by various factors like geopolitical events, while fixed deposits offer a secure and stable investment with minimal risk. 3. Returns on Investment Gold can be…

1. What is a Fixed Deposit Account? A Fixed Deposit Account, often referred to as a Time Deposit, is a financial instrument offered by banks where you deposit a lump sum of money for a predetermined period at a fixed interest rate. This interest rate is generally higher than that of a regular savings account. Fixed Deposits are a straightforward and secure way to earn interest on your savings, and they’re a fantastic option for individuals looking for a low-risk investment. 2. How do Fixed Deposit Accounts Work? Opening a Fixed Deposit Account is a simple process. You choose the…

What is a Fixed Deposit? So, what exactly is a fixed deposit? Think of it as a financial cocoon where you tuck away a lump sum amount for a predetermined period. During this period, your money grows at a predetermined interest rate. It’s like planting a seed and watching it grow into a sturdy tree over time. Fixed deposits are offered by banks and other financial institutions and are known for their safety and reliability. The Power of Compounding One of the magical aspects of fixed deposits is the power of compounding. Have you ever seen a snowball rolling down…

What Are Fixed Deposits? Fixed Deposits, often lovingly called ‘FDs,’ are like cozy nests for your money in the banking world. When you opt for an FD, you agree to lend a specific amount to your bank for a predetermined period. In return, your bank guarantees a fixed interest rate on your investment. This rate doesn’t change throughout the FD’s tenure, making it a predictable and stable option for your savings. Key Points: • Fixed interest rate throughout the tenure. • Principal amount remains secure. • Lower risk, suitable for risk-averse investors. • Ideal for short to medium-term goals. What…

1. What Are Fixed Deposits? Fixed Deposits, often referred to as time deposits, are a simple and popular investment option. When you invest in an FD, you’re essentially lending your money to a bank or financial institution for a fixed period, typically ranging from a few months to several years. In return, the bank pays you a fixed interest rate on your deposit, which is usually higher than what you’d earn from a regular savings account. 2. How Do Fixed Deposits Work? Let’s break it down: when you open an FD account, you decide the amount you want to deposit…