How gold resale value is decided
When you sell gold, the buyer pays for the gold content only — the weight multiplied by today's rate — minus a small deduction for wastage or purity. The making charges and GST you paid at purchase are not part of the resale; that money is spent the moment you buy. This is why jewellery is a weaker investment than coins or bars, where making charges are minimal.
Why you might still be in profit
Even though you lose the making charges and GST, you can still come out ahead if the gold rate has risen enough since you bought. Gold bought several years ago, when rates were much lower, often sells today at a profit despite the deductions. The calculator compares today's resale value against the total you originally paid so you can see where you stand.
Tax when you sell at a profit
A profit on physical gold is a capital gain. If you held the gold for 24 months or more, it is taxed at 12.5% without indexation. If held for less than 24 months, the gain is added to your income and taxed at your slab rate. Keep your original purchase invoice — you need it to prove your cost and calculate the gain.