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Do You Invest In Gold? One Wrong Choice Can Reduce 50% Of Your Returns
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Among the available options, Sovereign Gold Bonds are widely regarded as the most tax-efficient way to invest in gold for long-term investors
SGBs offer an annual interest of 2.5%, paid separately from the appreciation in gold prices.
Gold prices are on a remarkable upswing, delivering returns of nearly 80% over the past year. An investment of Rs 1 lakh made a year ago would today be worth around Rs 1.8 lakh, making gold one of the strongest-performing assets in the current market. Unsurprisingly, investors are increasingly turning to the yellow metal to capitalise on the rally.
However, financial experts warn that choosing the wrong mode of investment in gold can significantly erode returns, with taxes eating away 30-50% of profits in some cases. With gold investment no longer limited to jewellery, coins or bars, newer instruments such as Sovereign Gold Bonds (SGBs), Gold ETFs, gold mutual funds and digital gold have reshaped the investment landscape, offering better efficiency and, in many cases, lower tax liability.
Among the available options, Sovereign Gold Bonds are widely regarded as the most tax-efficient way to invest in gold for long-term investors. Issued by the Centre, SGBs offer an annual interest of 2.5%, paid separately from the appreciation in gold prices. The bonds have a maturity period of eight years, and the biggest advantage lies in taxation; capital gains on redemption at maturity are completely tax-free.
The annual interest income, however, is taxable as per the investor’s income tax slab. If the bonds are sold before maturity, capital gains tax applies, short-term capital gains if sold within one year, and long-term capital gains at 12.5% thereafter.
Gold ETFs and gold mutual funds are considered the next best alternatives, particularly for investors seeking liquidity and market-linked exposure without holding physical gold. In the case of Gold ETFs, gains are taxed as long-term capital gains at 12.5% if the units are sold after 12 months. For gold mutual funds, the long-term holding period is 24 months. Selling either instrument before the specified period attracts short-term capital gains tax, which is added to income and taxed according to the applicable slab, potentially as high as 30%.
Physical gold, whether in the form of jewellery, coins or bars, remains the least efficient option from a returns perspective. Investors must pay 3% GST at the time of purchase, a cost that immediately reduces effective returns. Digital gold purchases also attract the same GST. If physical or digital gold is sold after 24 months, long-term capital gains tax of 12.5% applies without the benefit of indexation. Selling before 24 months results in short-term capital gains tax as per the income tax slab.
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January 15, 2026, 17:29 IST
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The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
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