However, in the view of coronavirus pandemic, when going to a jewellery shop is still considered as risk, more and more people are investing in digital gold in India.
“Digital gold has increasingly caught the eye of investors as it offers all the benefits of gold and more.
One of the first things that investors need to check before purchasing digital gold is purity.
“The gold bought by you is stored centrally and shown to you as a digital vault balance of the number of grams owned by you.
Buying digital gold will attract 3% GST over the cost of your gold, just like in case of buying physical gold.
“After holding your digital gold for 5 years with MMTC-PAMP you shall be required to either sell the gold or convert it into gold coins.
Long-term capital gains from digital gold are taxed at 20% on returns along with applicable surcharge and 4% cess.
“A major disadvantage of buying digital gold is the lack of any regulatory mechanism in the digital gold space whereas gold funds come under the regulatory jurisdiction of Securities and Exchange Board of India .