Akshaya Tritiya 2022: The day for Akshaya Tritiya 2022 has arrived. Akshaya Tritiya 2022 falls today, that is, Tuesday May 3. In India, the occasion is considered as auspicious, an buying gold on Akshaya Tritiya is an age-old tradition in the country that continues to this day. This is said to bring good luck and fortune, and Indians, with their love for the yellow metal, buy gold on Akshaya Tritiya. However, the Covid-19 pandemic has lowered demand for physical gold while more and more investors are inclining towards buying digital gold.
Digital gold can be bought by anyone through various platforms. In India, three companies that sell digital gold include Augmont Gold; MMTC-PAMP India Pvt. Ltd, a joint venture between state-run MMTC Ltd and Swiss firm MKS PAMP; and Digital Gold India Pvt. Ltd with its SafeGold brand. You can also buy digital gold this Akshaya Tritiya using wallets including Paytm, Amazon Pay, Google Pay and PhonePe.
The key reasons behind digital gold can be attributed to its easy availability and low price. Here are the things you must know before buying digital gold on Akshaya Tritiya 2022:
What is Digital Gold?
As the name suggests, digital gold is gold that can be purchased online. The equivalent value of physical gold is stored by the seller in a safe vault on behalf of the investor.
One of the main things before purchasing digital gold that investors should check is the purity of it. According to experts, digital gold bought from MMTC-PAMP is more likely to be purer than that purchased from platforms in collaboration with SafeGold.
How to Buy Digital Gold?
Investors can buy digital gold by opening an account through the refiner directly. They can also open accounts on a partner platform to buy digital gold. Apart from mobile wallets and refiners, jewelers like Tanishq, Kalyan Jewelers and PC Jeweler have also started offering digital gold through tie-ups.
To buy from the refiner or jewelers, you first need to create an account and complete your eKYC process, choose the amount you want to buy, select your payment method and then complete the purchase.
You need to follow a similar process while buying digital gold from your wallet like Google Pay and PhonePe, with the difference being that the money will be deducted from that particular wallet.
Buy Gold at Re 1
Buying digital gold is a small investment option as well, as sellers allow you to buy a small amount of gold. The price range of digital gold starts from as low as Re 1.
GST and Other Taxes
“In the case of digital gold, there are no taxes for a holding of less than 3 years, in other words, there is no short term tax on digital gold,” said Vijay Singhania, chairman at TradeSmart.
“But long term holding of digital gold is taxed similar to physical good, that is, a tax rate of 20 percent plus a 4 per cent cess above it,” said Singhania.
Additionally, buying digital gold will also attract a GST of 3 per cent over the actual price, just like physical gold.
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