INCOME TAX18 Sept 2026
Digital gold is booming: Are investors overlooking hidden risks? Experts compare it with gold ETFs
Digital gold buying is booming in India, averaging about ₹2,500 crore a month from June to August, and up 110% year on year in August 2026. It's easy to start with ₹1 through apps, but the Securities and Exchange Board of India doesn't regulate it. A 3% to 6% spread plus 3% GST leaves you down 6% to 9%. Check who stores your gold before buying.
Key Statutory Highlights
- Digital gold buying in India held steady at around ₹2,500 crore a month from June to August, while gold ETF inflows rose 67% month on month to ₹2,597 crore in August.
- Digital gold is not governed by SEBI or the RBI, so any grievance has to be managed with the private app directly, and ETFs have a better recovery mechanism if the provider goes bankrupt.
- Digital gold comes with a 3% to 6% buy-sell spread and 3% GST, so an investor is down 6% to 9% immediately after purchase.
Actionable Advice for Taxpayers / Founders:Before putting money into digital gold, check who provides the product, how the underlying gold is stored, and what happens if that platform faces operational or financial problems. Ask a CA how it fits your overall savings and tax position.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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