Compute capital gains tax on physical gold jewellery, digital gold, Gold ETFs, and Sovereign Gold Bonds (SGB) under Budget 2024 simplified 12.5% tax rules.
LTCG holding period for physical gold and silver has been reduced from 36 months to 24 months, with tax rate reduced to 12.5% without indexation from 23rd July 2024.
Reportable in Schedule CG of ITR-2.
Gold and silver investments in India are categorized as capital assets. The tax treatment varies based on the instrument type (physical jewellery, digital gold, Gold ETFs, or Sovereign Gold Bonds).
Redemption at Maturity (8 Years): Capital gains arising to an individual upon redemption of SGBs with RBI at maturity are 100% EXEMPT from tax under Section 47(viiic).
Premature Sale on Stock Exchange: Taxed as LTCG at 12.5% if held > 12 months (listed) or STCG at slab rates.
Under the Finance (No. 2) Act 2024 (effective 23rd July 2024), physical gold and silver holding period for long-term qualification was cut from 36 months to 24 months, with tax reduced to 12.5% flat without indexation.
| Gold Instrument | LTCG Holding Period | LTCG Tax Rate | STCG Tax Rate |
|---|---|---|---|
| Physical Gold / Jewellery / Coins | > 24 Months | 12.5% (No Indexation) | Applicable Slab Rate |
| Gold ETFs / Gold Mutual Funds | > 24 Months (Post-Budget) | 12.5% (No Indexation) | Applicable Slab Rate |
| SGB (Redemption at Maturity) | 8 Years (or 5-7 yr RBI window) | 100% Tax-Exempt u/s 47(viiic) | Tax-Free |
| SGB (Sold on Stock Exchange) | > 12 Months (Listed) | 12.5% | Applicable Slab Rate |
Yes. The 2.5% annual semi-annual interest credited on SGBs is fully taxable under "Income from Other Sources" at your individual slab rate. No TDS is deducted on this interest.
For inherited gold acquired before April 1, 2001, the cost of acquisition is taken as the Fair Market Value (FMV) as on April 1, 2001, supported by a registered valuer's appraisal report.
Yes. Long term capital gains on gold can be 100% exempted under Section 54F by investing the net sale consideration in purchasing or constructing a residential house property.