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How Much Tax Is Applicable On Gold, Silver Gains? Know Tax Rates, ETF Rules And TDS
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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 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’s all you need to know:
Here’s a detailed look at how gains on gold and silver are taxed in India, along with the rules for ETFs and TDS applicability.
1. Tax on Physical Gold and Silver
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.
Short-Term Capital Gains (STCG): Returns from gold held for less than 24 months are termed short-term capital gains, according to cleartax.in.
Long-Term Capital Gains (LTCG): 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.
2. Tax on Gold and Silver ETFs
Gold and Silver Exchange-Traded Funds (ETFs) are treated similarly to physical holdings for tax purposes.
Held for less than 24 months: Gains are considered short-term and taxed as per your income tax slab.
Held for more than 24 months: Gains qualify as long-term and are taxed at 12.5%.
3. Tax on Sovereign Gold Bonds (SGBs)
Sovereign Gold Bonds, issued by the Reserve Bank of India (RBI), have a unique tax structure:
Interest Income: The annual interest (2.5%) paid on SGBs is taxable under ‘Income from Other Sources’ as per your income tax slab.
Capital Gains: If you hold the bonds till maturity (8 years), the capital gains are fully exempt from tax.
However, if you redeem them before maturity, after the 5th year, or sell them in the secondary market, LTCG at 12.5% applies.
4. Digital Gold and Silver
Many investors today buy “digital gold” or “digital silver” through fintech apps. The tax treatment is the same as physical gold —
Less than 24 months: Taxed as per slab (STCG).
More than 24 months: Taxed at 12.5% (LTCG).
5. Tax Deducted at Source (TDS) Rules
TDS applies when you sell physical gold or silver above certain limits or make large purchases:
On Sale: 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.
On Purchase: 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.
6. Gifts and Inherited Gold or Silver
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.
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.
It is important to note that a 3% GST is applicable on gold purchases, apart from making charges and a 5% tax on that.
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
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
October 22, 2025, 16:46 IST
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E-cheques coming soon? RBI unveils Payments Vision 2028, plans wider oversight of digital players – The Times of India
The Reserve Bank of India (RBI) on Friday unveiled its ‘Payments Vision 2028’ document, outlining a roadmap that includes exploring electronic cheques, expanding regulatory oversight to digital platforms, and strengthening safeguards in the fast-growing payments ecosystem, PTI reported.The central bank said it will examine the introduction of e-cheques to combine the advantages of paper instruments with the speed and reliability of digital payments. “To leverage the unique benefits of paper-based instruments and the speed and reliability of electronic payments, and cater to new business use cases, the introduction of electronic cheques in India shall be explored,” the RBI said.Alongside, the RBI is considering widening the regulatory ambit to include entities such as e-commerce marketplaces and centralised platforms that play a growing role in facilitating digital transactions.“In addition, e-commerce marketplaces and centralized platforms have been assuming significant responsibilities that could have implications on the orderly functioning of the payments ecosystem. These aspects shall be examined in detail and, if required, the scope of direct regulations shall be extended to cover such entities,” the document said.The vision document also proposes allowing users to enable or disable transactions across digital payment modes, similar to controls available for card transactions.To address fraud risks, the RBI is exploring a “shared responsibility framework” under which both the issuing bank and the beneficiary bank would share liability in cases of unauthorised digital transactions.The central bank also plans to review cheque design and security features, introduce a Domestic Legal Entity Identifier (DLEI) framework for better transaction traceability, and bring in a Cyber Key Risk Indicators (KRI) framework for non-bank payment system operators.Other initiatives include exploring white-label solutions in the Aadhaar Enabled Payment System (AePS), developing interoperability in the Trade Receivables e-Discounting System (TReDS), and introducing a ‘Payments Switching Service’ to ease customer migration across platforms.The RBI said it will also review the cross-border payments ecosystem to improve efficiency and streamline authorisation processes, alongside publishing periodic reports on global and domestic payment trends.Additionally, the central bank aims to enhance access to payment data and reimagine the card payments ecosystem by promoting secure tokenisation, improved transparency in pricing, and greater choice for users and merchants.
Hyderabad: Pharma player Hetero on Friday said it has rolled out exports of its generic semaglutide injection portfolio as part of a multi-year plan to widen access to treatments for type 2 diabetes and obesity in more than 75 countries.The Hyderabad-based pharmaceutical company said initial rollouts are under way in Africa, Asia and the Middle East, with additional launches planned in other markets subject to regulatory approvals.The injectable therapies will be sold under the brand names Truglyx, Rolmodl and Moto G. Semaglutide belongs to the GLP-1 class of medicines, which are used in diabetes care and weight management.Hetero said the export launch is part of its broader strategy to improve access to advanced cardio-metabolic therapies, particularly in emerging markets.The company said the products will be offered in multi-dose disposable pen devices designed in line with innovator formats and will be available in several strengths, including 0.25 mg, 0.5 mg, 1 mg, 2 mg, 1.7 mg and 2.4 mg, allowing dosing flexibility for both diabetes and obesity treatment.Hetero said it is also awaiting approval from India’s Central Drugs Standard Control Organisation (CDSCO) after completing clinical trials in type 2 diabetes and obesity and plans an India launch after regulatory clearance.Hetero managing director Dr Vamsi Krishna Bandi said the company aims to provide high-quality, affordable generic semaglutide through a single global product platform backed by its manufacturing and development capabilities.He said Hetero would use its commercial networks across Asia, the Middle East, Africa and Latin America to support supply and access. The Hyderabad-headquartered Hetero operates in more than 145 countries and employs over 30,000 people.
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