Gold Investment Taxation#
Physical Gold#
- LTCG (after 3 years): 20% with indexation
- STCG: Taxed as per slab
Gold ETFs#
- Treated as capital gains
- Same as equity funds taxation
Sovereign Gold Bonds (SGB)#
- Interest taxable annually
- LTCG exempt if held to maturity
- Best tax-efficient option
Comparison#
| Type | Tax Treatment | Best For |
|---|---|---|
| Physical Gold | 20% LTCG | Traditional buyers |
| Gold ETFs | 12.5% LTCG | Investors |
| SGB | Interest only | Tax-savvy |