{"id":20020,"date":"2025-10-22T16:19:02","date_gmt":"2025-10-22T16:19:02","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/10\/22\/how-much-tax-is-applicable-on-gold-silver-gains-know-tax-rates-etf-rules-and-tds-tax-news\/"},"modified":"2025-10-22T16:19:02","modified_gmt":"2025-10-22T16:19:02","slug":"how-much-tax-is-applicable-on-gold-silver-gains-know-tax-rates-etf-rules-and-tds-tax-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/22\/how-much-tax-is-applicable-on-gold-silver-gains-know-tax-rates-etf-rules-and-tds-tax-news\/","title":{"rendered":"How Much Tax Is Applicable On Gold, Silver Gains? Know Tax Rates, ETF Rules And TDS | Tax News"},"content":{"rendered":"


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Last Updated:<\/span>

Whether you invest in physical forms such as jewellery, coins, or bars, or through paper and digital modes like ETFs or Sovereign Gold Bonds, your gains are taxable.<\/h2>\n
\"Tax<\/p>\n

Tax on Gold and Silver Gains.<\/p>\n<\/figure>\n

Tax on Gold and Silver Gains:<\/strong> Gold prices have surged over 60% in the past year, while silver has doubled during the period, accruing gains for investors. However, gold, like any other asset class, also attracts capital gains tax on sale. Whether you invest in physical forms such as jewellery, coins, or bars, or through paper and digital modes like Exchange-Traded Funds (ETFs) or Sovereign Gold Bonds (SGBs), your profits are taxable. Here\u2019s all you need to know:<\/p>\n

Here\u2019s a detailed look at how gains on gold and silver are taxed in India, along with the rules for ETFs and TDS applicability.<\/p>\n

1. Tax on Physical Gold and Silver<\/strong><\/p>\n

When you sell gold or silver (jewellery, coins, or bars), any profit you make is treated as a capital gain. The tax depends on the holding period.<\/p>\n

Short-Term Capital Gains (STCG):<\/strong> Returns from gold held for less than 24 months are termed short-term capital gains, according to cleartax.in.<\/p>\n

Long-Term Capital Gains (LTCG):<\/strong> If you sell the asset after 24 months, the profit qualifies as long-term capital gains and is taxed at 12.5%. Also, if it was purchased on or after July 23, 2024, the same will be taxed at 12.5% without the indexation benefit. But, if purchased before July 23, 2024, investors can also avail indexation benefit with a 20% tax.<\/p>\n

2. Tax on Gold and Silver ETFs<\/strong><\/p>\n

Gold and Silver Exchange-Traded Funds (ETFs) are treated similarly to physical holdings for tax purposes.<\/p>\n

Held for less than 24 months:<\/strong> Gains are considered short-term and taxed as per your income tax slab.<\/p>\n

Held for more than 24 months:<\/strong> Gains qualify as long-term and are taxed at 12.5%.<\/p>\n

3. Tax on Sovereign Gold Bonds (SGBs)<\/strong><\/p>\n

Sovereign Gold Bonds, issued by the Reserve Bank of India (RBI), have a unique tax structure:<\/p>\n

Interest Income:<\/strong> The annual interest (2.5%) paid on SGBs is taxable under \u2018Income from Other Sources\u2019 as per your income tax slab.<\/p>\n

Capital Gains:<\/strong> If you hold the bonds till maturity (8 years), the capital gains are fully exempt from tax.<\/p>\n

However, if you redeem them before maturity, after the 5th year, or sell them in the secondary market, LTCG at 12.5% applies.<\/p>\n

4. Digital Gold and Silver<\/strong><\/p>\n

Many investors today buy \u201cdigital gold” or \u201cdigital silver” through fintech apps. The tax treatment is the same as physical gold \u2014<\/p>\n

Less than 24 months:<\/strong> Taxed as per slab (STCG).<\/p>\n

More than 24 months:<\/strong> Taxed at 12.5% (LTCG).<\/p>\n

5. Tax Deducted at Source (TDS) Rules<\/strong><\/p>\n

TDS applies when you sell physical gold or silver above certain limits or make large purchases:<\/p>\n

On Sale:<\/strong> If you sell gold or silver worth more than Rs 50 lakh in a financial year to a buyer required to deduct tax (like a jeweller), TDS of 1% may be deducted on the sale consideration.<\/p>\n

On Purchase:<\/strong> From July 1, 2021, if you buy gold worth more than Rs 10 lakh in cash, TDS\/TCS (Tax Collected at Source) of 1% applies, and PAN\/Aadhaar details are mandatory.<\/p>\n

6. Gifts and Inherited Gold or Silver<\/strong><\/p>\n

If you receive gold or silver as a gift, it is taxable if the total value of gifts received during the financial year exceeds Rs 50,000, unless received from a relative or on occasions like marriage.<\/p>\n

If you inherit gold or silver, no tax is payable at the time of inheritance. However, when you sell it later, capital gains tax applies based on the original cost of acquisition to the previous owner.<\/p>\n

It is important to note that a 3% GST is applicable on gold purchases, apart from making charges and a 5% tax on that.<\/p>\n

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\"Mohammad<\/figure>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Follow News18 on Google<\/a>. Join the fun, play QIK games on News18<\/a>. Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n
First Published:<\/span><\/p>\n
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October 22, 2025, 16:46 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> tax<\/a> How Much Tax Is Applicable On Gold, Silver Gains? Know Tax Rates, ETF Rules And TDS<\/span><\/div>\n
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Last Updated:October 22, 2025, 16:46 IST Whether you invest in physical forms such as jewellery, coins, or bars, or through paper and digital modes like ETFs or Sovereign Gold Bonds, your gains are taxable. Tax on Gold and Silver Gains. Tax on Gold and Silver Gains: Gold prices have surged over 60% in the past…<\/p>\n","protected":false},"author":1,"featured_media":19914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-20020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/20020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=20020"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/20020\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/19914"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=20020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=20020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=20020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}