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    Etfs Back

    ETFs And Bonds

    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:

    Gold Investment Tax when buying

    Tax when selling (based on holding period)

    LTCG: 12.5%

    STCG: as per slab rate

    Physical Gold
    (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.

    What is an ETF unit? What are Equity ETFs? What are Index ETFs? What are Gold and Silver ETFs? What is impact cost in ETFs? What is tracking error and tracking difference? How are ETFs different from Stocks and Mutual Funds? What should I check before investing in ETFs? How to reduce Impact Cost? What is Indicative Net Asset Value (iNAV)? What is the difference between Impact cost and Expense ratio? What is an Exchange-Traded Fund (ETF)? What is Net Asset Value (NAV)?