Here’s How To Convert Physical Gold Into e-Gold

Most Indians invest in gold in physical form. Over the years though, the government has been encouraging people to invest in the yellow metal in other forms. In 2015, it launched Sovereign Gold Bonds (SGBs). In Union Budget 2023-24, announced this February, the government gave another push to encourage people to move over physical forms of gold by removing the incidence of capital gains tax on conversion of physical gold to electronic gold receipts (EGRs) and vice-versa. It is proposed that the holding period for capital gains would include the time the physical gold was held prior to its conversion. Also, the cost of buying EGR shall be deemed the cost of gold paid for earlier. Here’s demystifying EGRs. Step-By-Step Process 1. Open a demat account with a trading member or depository with all the necessary documents—photograph, and proofs of identity, income, bank, and...