Gold, either in physical or digital form, is a valid investment in India. As per the Central Board of Direct Taxes (CBDT), there are no restrictions on holding physical gold as long as the source of investment or inheritance can be explained. It is crucial you file all purchase receipts and making invoices for tax purposes.\r\rThe legitimacy of digital investments either through ETFs, gold funds or Sovereign Gold Bonds (SGB) is pretty straightforward given the various KYC and investment checks in place.