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Typical: Plain 8-12% / Handmade 15-25%
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Standard GST on gold in India: 3%
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Rate tracks IBJA benchmark (international spot × USD/INR × 1.047). Retail prices in your city may vary by ₹100-400/gram. Purchases above ₹2 lakhs attract 1% TCS (Tax Collected at Source) by the jeweller. Making charges and GST are additional. For reference only. Verify with your jeweller.
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City premiums are indicative based on typical local market variations. Actual retail prices include making charges and 3% GST.

Gold Price in India Today: How It Is Calculated

Gold has historically been India's most trusted inflation hedge. Read our guide on why gold is an inflation hedge for the full picture. Use our Real Return Calculator to see what gold actually earns after adjusting for inflation. The gold price you see in India is derived from the international spot price of gold in USD per troy ounce, converted to INR using the current dollar-rupee exchange rate, then divided by 31.1035 grams per troy ounce to get the price per gram.

Gold Rate (₹/gram, 24K) = (Spot Price in USD/oz ÷ 31.1035) × USD/INR rate × India Factor (~1.047)
Gold Rate (₹/gram, 22K) = 24K rate × (22 ÷ 24) = 24K rate × 0.9167
Gold Rate (₹/gram, 18K) = 24K rate × (18 ÷ 24) = 24K rate × 0.75

With gold at approximately USD 5,005/oz and USD/INR at approximately 92, the 24K rate works out to approximately ₹15,500-15,600/gram closely tracking the IBJA benchmark. The 1.047 India factor captures the 6% basic customs duty, 2.5% AIDC, and MCX exchange premium over LBMA spot. The India Bullion and Jewellers Association (IBJA) publishes daily official rates that most Indian jewellers follow. Use our Inflation Calculator to model how rising prices affect the real value of your gold holdings over time.

Why Retail Gold Prices Differ from Spot Prices

India imposes a 6% basic customs duty on gold (reduced from 15% in the Union Budget 2024-25) plus 2.5% Agriculture Infrastructure and Development Cess (AIDC). After import duties, MCX adds its own exchange premium over LBMA spot. Combined, Indian gold is approximately 4.5-5% above international spot × USD/INR before any jeweller margins — which is why our calculator uses a 1.047 India factor to closely match IBJA benchmark rates. To understand how inflation eats into your investment returns, read our explainer on nominal vs real returns and how inflation impacts returns. For the most accurate current duty and tax rates, refer to the Central Board of Indirect Taxes and Customs (CBIC).

Gold Purity Guide: 24K vs 22K vs 18K vs 14K in India

Understanding purity is essential to getting value for money when buying gold in India. Before deciding how much gold to buy, read our detailed comparison of Gold vs FD vs Equity, covering which asset class wins over 10 years in India.

PurityGold %BIS HallmarkBest UsePrice vs 24K
24 Karat99.9%999Coins, bars, investment100% (base)
22 Karat91.67%916Most Indian jewellery (durable)91.67% of 24K
18 Karat75%750Diamond/studded jewellery (harder)75% of 24K
14 Karat58.33%585Western fashion jewellery58.33% of 24K

BIS hallmarking under Bureau of Indian Standards is now mandatory for gold jewellery sold in India. Always check the BIS hallmark before buying. Hallmarked 22K jewellery with a 916 stamp guarantees 91.67% gold content. Keep in mind that inflation is your biggest wealth enemy — gold is one tool to fight it, but not the only one.

Making Charges for Gold Jewellery in India: What to Expect

Making charges are the jeweller's fee for crafting the jewellery. They are the most negotiable part of the gold purchase price and vary widely.

Jewellery TypeTypical Making ChargesNotes
Plain chains, simple bangles6-10%Machine-made, lower labour cost
Standard rings and earrings10-15%Semi-machine, moderate labour
Necklaces, kadas12-18%More complex casting and finishing
Handmade / Filigree work18-25%High skilled labour, artisanal
Temple jewellery / Kundan25-40%Extremely labour-intensive craft
Big brand jewellers (Tanishq, Malabar)14-22%Brand premium on top of making

Buying tip: Always negotiate making charges, especially at local jewellers. Ask for the making charge as a flat per-gram rate rather than a percentage. It is easier to compare and often lower. Per the GST Council framework, making charges attract 5% GST separately from the 3% on gold value.

Gold Weight Units in India: Grams, Tola and Sovereign

UnitIn GramsCommon UseExample at ₹7,500/g (22K)
1 Gram1.000 gModern retail standard₹7,500
1 Tola11.6638 gTraditional Indian unit, still widely used₹87,479
1 Sovereign8.000 gSouth India, especially Tamil Nadu and Kerala₹60,000
10 Grams10.000 gStandard coin size, most commonly quoted₹75,000
1 Troy Ounce31.1035 gInternational trading standard₹2,33,276
1 Pavan (South India)8.000 gTamil Nadu, Kerala — same as sovereign₹1,17,920

Sovereign Gold Bond vs Physical Gold: Which Is Better in India?

Sovereign Gold Bonds (SGBs) issued by the Reserve Bank of India are widely considered the smartest way to own gold in India for investment purposes. We have a detailed guide on SGB vs Physical Gold — tax treatment and returns compared. If you are building a retirement portfolio with a gold allocation, use our Retirement Planning Calculator to size the overall corpus needed. Here is a detailed comparison.

ParameterPhysical GoldSovereign Gold Bond
Backed byActual metalGovernment of India (RBI)
Making charges8-25% (lost on resale)Zero
Storage costLocker rent or insurance costsZero — held in demat
Annual interestNone2.5% per annum on issue price
Capital gains tax on maturity20% LTCG with indexationZero (if held to maturity)
LiquidityCan sell anytime, lose making charges5-year lock-in, tradeable on NSE/BSE after that
Purity riskBIS hallmark check requiredZero — backed by RBI
Best forJewellery, gifting, personal useInvestment — maximum return on gold exposure

For a 5-year investment: SGB gives you gold price appreciation + 2.5% annual interest + zero capital gains tax at maturity. Physical gold gives only price appreciation minus making charges minus LTCG tax. For pure investment, SGBs win decisively. For jewellery, physical gold is the only option. Check the latest SGB series on the RBI website or via NSE. Also read: why FDs fail to beat inflation and our full three-way comparison of Gold vs FD vs Equity over 10 years. Calculate gold's historical CAGR vs equity using our CAGR Calculator. For systematic wealth building, our SIP Calculator shows how equity SIPs compare to gold over a 10-year horizon.

TCS on Gold Purchases in India: What You Need to Know

Under Section 206C(1F) of the Income Tax Act, jewellers are required to collect 1% TCS (Tax Collected at Source) on cash purchases of jewellery above ₹2 lakhs. This is a common source of confusion for buyers. It is not an additional tax on your income, but rather an advance tax collection that you can offset against your total tax liability.

  • Threshold: TCS applies on jewellery purchases above ₹2 lakhs. Below ₹2 lakhs, no TCS.
  • Rate: 1% of the purchase value above ₹2 lakhs.
  • Who collects it: The jeweller collects and deposits with the government on your behalf.
  • How to claim it back: The TCS appears in your Form 26AS. When you file your ITR, claim it as advance tax paid. This reduces your final tax liability or results in a refund.
  • PAN required: For purchases above ₹2 lakhs, the jeweller will ask for your PAN card. Always provide it. This ensures TCS is correctly credited to your account.

The calculator above automatically shows a TCS alert when your total exceeds ₹2 lakhs. Source: Income Tax Department of India. For a full breakdown of how gold is taxed on sale, read our guide on capital gains tax in India and the Income Tax Act 2025 explained. Calculate your exact tax liability when selling gold using our Capital Gains Calculator and check the overall impact on your income with the Income Tax Calculator.

Gold Wastage Charges, Old Gold Value and Festival Buying Guide

What Are Gold Wastage Charges?

Wastage charges — also called making wastage or karigar wastage — are an additional deduction jewellers apply to account for gold lost during the manufacturing process. Unlike making charges (which are a fee for craftsmanship), wastage represents the actual material lost when gold is melted, rolled, drawn into wire, or shaped. In India, wastage typically ranges from 2% to 12% of the gold weight, depending on the complexity of the design.

Jewellery TypeTypical Wastage %Impact on Final Price
Plain bangles, simple chains2-4%Minimal — machine-made, low waste
Standard rings, earrings4-6%Low — semi-machine processes
Necklaces, kadas6-9%Moderate — complex assembly
Handmade or filigree8-12%High — artisanal processes lose more gold
Antique or Kundan10-15%Very high — multiple re-melts during craft

Always ask your jeweller to show the wastage separately in the invoice. Reputable jewellers like Tanishq and Malabar show wastage, making charges and gold value as separate line items. This calculator does not add wastage by default — use the making charges slider to approximate its effect.

How to Calculate Old Gold (Scrap Gold) Value

Selling old gold or exchange value of old gold is calculated differently from buying. Jewellers typically pay 92-97% of the current 24K rate for scrap gold, after assaying purity. For 22K old jewellery:

Old Gold Value = Weight (g) × 24K rate × (Purity/24) × Buyback % (typically 92-97%)

Example: 10g of 22K old gold at ₹15,500/g (24K rate), 95% buyback = 10 × 15,500 × (22/24) × 0.95 = ₹1,35,229. The calculator above can estimate base metal value — use 95% of the result as a realistic old gold exchange estimate.

Gold Rate on Festival Days: Dhanteras, Akshaya Tritiya and Navratri

Gold demand spikes sharply around major Indian festivals, which affects availability and sometimes pricing. Here is what to expect:

  • Dhanteras (Diwali festival): Highest single-day gold buying event in India. Prices are typically 1-3% above IBJA benchmark due to peak demand. Jewellers often offer discounts on making charges instead.
  • Akshaya Tritiya: The second-largest gold buying day. Considered auspicious for long-term wealth. Gold ETFs and SGBs see strong inflows as digital alternatives. Prices tend to firm up 1-2 weeks before.
  • Navratri and Dussehra: Regional demand surge — particularly strong in Gujarat, Rajasthan and Maharashtra. Making charges often run promotions during these periods.
  • Gudi Padwa and Ugadi: Popular in Maharashtra, Andhra Pradesh and Karnataka for gold purchases. South Indian sovereigns (pavan) see peak demand.

Buying tip: Festival days are not always the cheapest for gold — they are simply auspicious. The best time to buy gold on price is typically after a geopolitical event-driven spike corrects, or when MCX gold futures show a contango (futures price higher than spot), indicating supply is adequate.

MCX Gold Price vs IBJA Rate: What Is the Difference?

Indian buyers frequently see two different gold prices — MCX and IBJA. They serve different purposes:

  • MCX (Multi Commodity Exchange) gold price: This is the futures price of gold traded on India's commodity exchange. It reflects market expectations of future gold prices and is quoted per 10 grams of 24K gold. MCX prices include import duty and are in INR. Jewellers and bullion dealers use MCX as a real-time reference throughout the trading day.
  • IBJA (India Bullion and Jewellers Association) rate: This is the official daily benchmark set by India's largest bullion dealers at 11am and 5pm each day. Most retail jewellers price their gold based on IBJA rates, not MCX. The IBJA rate is quoted after import duty but before GST and making charges.

For consumers buying jewellery, the IBJA rate is the more relevant reference. This calculator tracks international spot × USD/INR × India factor (~1.047), which closely matches the IBJA benchmark throughout the day.

Gold as Collateral: Using This Calculator for Gold Loan Eligibility

Banks and NBFCs like Muthoot Finance, Manappuram, HDFC Bank and SBI offer gold loans at 65-90% of the gold value (LTV ratio). The gold value for loan purposes is calculated on the net gold weight (excluding stones and metal parts) at 22K or 24K purity. Use this calculator to estimate your gold's base metal value, then apply the lender's LTV ratio to get an indicative loan amount. Note that actual loan amounts depend on the lender's assay of your specific piece. Most gold loan providers in India follow the RBI's maximum LTV guideline of 75% for NBFCs.

Frequently Asked Questions

What is today's gold price in India per gram?

Today's live gold price is shown in the ticker above, updated every 60 seconds from international spot markets. The rate shown is the international spot converted to INR per gram. Retail jeweller prices are typically 2-5% higher due to import duty and local premiums. Check IBJA for the official daily rate used by most Indian jewellers.

What is the difference between 24K, 22K and 18K gold?

24K is 99.9% pure gold — used for coins, bars and investment. 22K is 91.67% pure — most common for Indian jewellery, more durable than 24K. 18K is 75% pure — used for diamond and studded jewellery as it holds stones better. Always check the BIS hallmark to verify purity.

What GST applies to gold in India?

Gold attracts 3% GST on the gold value. Making charges attract 5% GST separately. For investment gold like coins and bars, only 3% GST applies on the total value. This calculator uses 3% on total as a simplified estimate — for exact jewellery GST, apply 3% on gold value and 5% on making charges separately. Source: CBIC GST portal.

Is it better to buy gold coins or jewellery in India?

For investment purposes, gold coins are better, with lower making charges (1-2%), high liquidity, and easier resale at spot price. For gifting or personal use, jewellery makes sense emotionally but has high making charges (8-25%) that are largely unrecoverable at resale. For pure financial returns, Sovereign Gold Bonds (SGBs) issued by RBI offer 2.5% annual interest on top of gold price appreciation with zero making charges. If building long-term wealth is the goal, read our SIP vs lumpsum guide to understand how equity mutual funds compare to gold over the long run. For a one-time investment, our Lumpsum Calculator shows what a gold coin purchase would grow to at different return rates. PPF is another safe-haven alternative. Compare using our PPF Calculator.

What is a tola in gold measurement?

A tola is a traditional Indian unit of weight equal to 11.6638 grams. Historically gold rates in India were quoted per tola. Today most jewellers quote per gram or 10 grams. The calculator supports grams, tola, sovereign and pavan (8 grams, used in Tamil Nadu and Kerala) units. Note: some sources incorrectly state 1 tola = 10 grams. The correct and standardised value is 11.6638 grams, per the IBJA standard.

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