Tax on Selling Gold in India
Physical gold and silver held more than 24 months are long-term: gains are taxed at 12.5% without indexation (since 23 July 2024). Held 24 months or less, gains are added to your income and taxed at your slab rate. Sovereign Gold Bonds are tax-free on redemption only if you subscribed at issue and held to maturity (from 2026-27).
Facts checked 26 October 2026 · Not financial, legal or tax advice
At a glance
| What you sell | How the gain is taxed | Notes |
|---|---|---|
| Physical gold (jewellery, coins, bars) | Held over 24 months: 12.5%, no indexation. Up to 24 months: slab rate. | Section 197 of the Income-tax Act, 2025 (formerly section 112). |
| Physical silver | Same as gold: 12.5% after 24 months. | |
| Gold ETFs (listed) | Long-term after 12 months: 12.5%. Short-term: slab rate. | Gold mutual funds (unlisted): long-term after 24 months. |
| Sovereign Gold Bonds | Redemption at maturity tax-free only for original subscribers who held to maturity (from 2026-27). | Bought on the exchange: taxed on sale or redemption. |
How gold gains are taxed
- Physical gold is a capital asset. Since 23 July 2024 it is long-term if held more than 24 months (previously 36).
- Long-term gains are taxed at 12.5% without indexation (section 197 of the Income-tax Act, 2025 from 1 April 2026; section 112 before).
- Short-term gains (24 months or less) are added to your income and taxed at your slab rate.
- Silver follows the same rules as other assets: long-term after 24 months, 12.5%.
- Listed gold ETFs are long-term after 12 months; Sovereign Gold Bonds bought at issue and held to maturity are tax-free on redemption, but bonds bought on the exchange are taxed (12.5% if held over a year).
Reporting
- Report capital gains in the capital gains schedule of your return; keep purchase bills for gold to prove cost and holding period.
Losses
- Losses on gold and silver follow the normal capital-loss rules.
Tax on Selling Gold in India: FAQ
What is the tax on selling gold in India?
If you held it more than 24 months, the gain is taxed at 12.5% without indexation. If you held it 24 months or less, the gain is added to your income and taxed at your slab rate. GST you paid on purchase isn't part of the gain calculation unless it's part of your cost.
Is exchanging old gold for new jewellery taxable?
An exchange is treated as a sale of the old gold, so a gain can be taxable on the same rules. Keep the purchase bill or a record of inheritance to prove cost.
Are Sovereign Gold Bonds still tax-free?
From 2026-27, redemption at maturity is tax-free only for individuals who subscribed at original issue and held the bond until maturity. Bonds bought on the stock exchange are taxed when sold or redeemed.
Sources (9)
- Deloitte: capital gains regime after Budget 2024
- Aditya Birla Capital: capital gains tax on gold
- Taxmann: Budget 2026 and Sovereign Gold Bonds
- NISM: how Budget 2026 changes SGB taxation
- Income Tax Department: section 115BBH
- Income Tax Department: taxation of virtual digital assets (2026)
- TDSMan: TDS on VDAs under section 393(1)
- Income Tax Department: Schedule VDA
- Income Tax Department: section 197, Income-tax Act 2025
General information about the rules for individual investors, checked October 2026. Tax depends on your circumstances and residence; check with the tax authority or an adviser. Not tax advice.