Neutral impactCommodity
Buying gold this festive season? Check tax rules on cash purchases, PAN requirement and limit on holding gold at home
Mint 1 hr ago·12 Oct 2026, 4:41 pm
Indian investors looking to buy gold this festive season should be aware of new tax rules that impact cash transactions. The government has mandated that any gold purchase exceeding ₹2 lakh in cash requires a PAN card. This rule is designed to curb black money and improve tax compliance. Additionally, the Finance Act has introduced a 2.5% tax on the sale of gold jewellery held for less than three years. This tax applies to the total sale value, not just the profit, and must be paid at the time of selling the asset.
This change matters because it affects the overall cost and liquidity of gold investments. While the tax on short-term holdings reduces potential profits, it also increases the cost of entry for new buyers. Investors must plan their finances accordingly, as they will need to account for this tax liability when selling their ornaments. The new rules also require sellers to collect and deposit the tax, which could influence pricing and availability in the market.
What to watch next is how these regulations impact the gold market during the festive peak. Traders and jewellers may adjust their pricing strategies to accommodate the new tax structure. Investors should also monitor the central bank's stance on gold imports, as this can influence domestic supply and prices. Staying informed about these factors will help investors make better decisions when purchasing or selling gold this season.
Key takeaways
- Category: Commodity.
Why it matters
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