General
General
How are gold investments taxed at the time of purchase and sale across different forms?
Taxation depends on the form of gold and the holding period:
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Gold Investment
Tax when buying
Tax when selling (based on holding period)
LTCG: 12.5%
STCG: as per slab rate
Physical Gold
(Coins, Bars)
(Coins, Bars)
3% GST on purchase value
24 months
Gold Jewellery
3% GST on gold value + 5% GST on making charges (separately calculated).
24 months
Gold ETFs
No GST (treated as financial security).
12 months
Gold Mutual Funds
No GST
24 months
Sovereign Gold Bonds (SGBs)
No GST on purchase.
12 months*
*SGBs are tax free if bought at primary issue and held till RBI maturity.
Important points to Note:
a. Under Section 54F of the Income Tax Act, LTCG may be exempt if entire sale proceeds are invested in a residential property within prescribed timelines.
b. Holding period rules revised after July 23, 2024.