New Delhi, Sept. 13 -- Gold prices breached the '40,000 mark per 10gm on 26 August for the first time. The prices have been on the rise since last one year. During this period, the yellow metal outperformed other avenues of investment such as equity mutual funds, real estate and fixed income instruments. Before you leap into investing in gold, consider other factors such as risk, liquidity and taxability. Also, remember that its tax aspect can affect your net return. Taxability of gold depends on the form in which you buy and the holding period. Here are the details.

Physical gold

If you invest in physical gold such as bars, coins or jewellery, any gains from sale within three years from the date of purchase will be considered as short-...