The last few months have been exceedingly tough especially for those residing in urban areas and those having lost their jobs.
Selling gold is the last option for gold buyers, though these days many individuals invest in gold as an investment and have little sentimental attachment. Those who have invested a few years ago have reaped a bountiful and would like to book profits and sell physical gold. The ideal place to sell gold would be through the companies that specialize in purchasing gold for cash.
Where to sell gold for cash?
There are companies like Attica, Muthoot Gold Point, D Gold etc., who pay instant cash or do an NEFT transfer against your gold.
Muthoot Gold Point gives cash upto Rs 10,000 and the balance is done through an NEFT transfer. Attica Gold company apart from buying gold for cash also releases your pledged gold. The company uses state of the art machines to check gold purity and pays cash. You need your Aadhar Card and PAN card for the purpose. The entire process at Attica does not take more than 15 minutes.
However, in the case of most companies one has to have the branches near to us, since sale of gold needs physical presence and no electronic sale is possible. Muthoot has about 11 branches, while Attica has 200+ branches in 100+ cities in 5, different states of India.
Dgold is another company that purchases gold, though the branches are limited when compared to Attica. Most companies offer you the day's gold price and apart from this there is a 2 per cent commission that is applicable.
Taxation on gold
Remember when you sell gold there is a tax that you need to pay. The short term capital gains tax would apply as per the tax slab. Short term is defined as sale before a period of three years. So, if you buy gold in on Jan 1, 2018 and sell on Oct 23, 2020, short term capital gains tax would apply. This means the amount would be added to your total income and you would be taxed according to your tax slab.
In case it is long term capital gains, that is if you sell the jewellery after a period of 2 years, long term capital gains would be applicable. It would be taxed at 20.8 per cent, without indexation. So, the indexation number, which takes into account inflation would apply, which means you do not have to strictly pay 20.8 per cent and the net rate could reduce.
Before selling your gold, it is important to make enquiries and get the rate right. If you are selling large amounts of gold, it is highly possible that you could lose out. So, make sure that you check the rates as rates vary even in a single city.
About the author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, commodities, debt, mutual funds and tax planning. Sunil is currently Managing Editor for Goodreturns.in