What is the tax on selling physical gold in India?▼
If held for more than 24 months: Long-Term Capital Gains (LTCG) tax at 12.5% flat rate without indexation benefit (post July 2024 budget). If held for less than 24 months: Short-Term Capital Gains (STCG) taxed at your income slab rate. Additionally, TDS of 1% applies if sale value exceeds ₹10 lakh.
Is gold sale tax-free after 3 years?▼
No, gold sale is never completely tax-free (unless it's SGB at maturity). After the 2024 budget, physical gold LTCG is taxed at a flat 12.5% after 24 months. The earlier 20% with indexation benefit has been removed for transfers after July 23, 2024.
How is inherited gold taxed when sold?▼
When you sell inherited gold, the cost of acquisition is the price at which the previous owner purchased it. The holding period includes the previous owner's holding period. So if your parent bought gold 10 years ago and you inherited it, it's already long-term when you sell it — LTCG at 12.5%.
What is the tax on selling digital gold?▼
Digital gold (PhonePe, Paytm, Google Pay gold) is treated exactly like physical gold for tax purposes. LTCG after 24 months at 12.5%. STCG before 24 months at your slab rate.
Is Sovereign Gold Bond tax-free?▼
Yes, if held till maturity (8 years), SGB capital gains are 100% tax-free. The 2.5% annual interest is taxable at your slab rate. If sold before maturity on exchange, LTCG at 12.5% applies after 12 months.
Do I need to pay GST when buying gold?▼
Yes, 3% GST applies on gold purchases (jewelry, coins, bars). Additionally, 5% GST applies on making charges. This GST is a cost of acquisition and reduces your taxable capital gains when you sell.