Capital Gains — Gold

Gold Tax in India: Jewellery, Coins, ETF, SGB Rules (FY 2026-27)

Physical gold + gold ETF: >24 months = 12.5% LTCG, else slab. SGB redemption with RBI = fully exempt (interest taxed yearly). No new SGB tranches — buy ETF/digital instead.

Gold tax table

Form	Short-term (≤24 mo)	Long-term (>24 mo)
Jewellery / coins / bars	Slab rate	12.5%, no indexation
Gold ETF / gold MF (pre-Apr-2023 units)	Slab rate	12.5%, no indexation
Gold ETF / MF (post-Apr-2023 units)	Slab always (specified-MF rule)
SGB — redeemed with RBI at maturity	Exempt (individuals); 2.5% interest taxable yearly
SGB — sold on exchange early	Normal CG rules (12.5% if >24 mo)

Inheriting gold? No tax on receipt — cost = previous owner's cost, holding includes their years. CG masterclass → · Save CG with 54/EC/F →

SGB vs ETF vs physical (all-in cost table)

Route	Extra costs	Returns kicker	Tax on exit
SGB (if tranche open)	Nil (no GST/making)	2.5% yearly interest (taxable)	Nil if held to maturity
Gold ETF/FoF	~0.5-1% expense	Pure price tracking	LTCG 12.5% after 24 months
Physical (coins/bars)	3% GST + 5-10% making	In-hand (theft risk!)	LTCG 12.5% after 24 months
Jewellery	3% GST + 10-30% making	Wearable (resale haircut!)	LTCG 12.5% after 24 months

Our blunt take: jewellery is consumption with a gold souvenir — making charges + GST mean you start 15-30% underwater. For INVESTMENT gold, SGB-to-maturity (tax-free!) beats everything; ETF second. Buy jewellery for weddings, not for portfolios.

📌 Remember: SGB interest is taxable, maturity isn't

SGB's 2.5% yearly interest lands in 'income from other sources' — taxable at slab, every year. But hold to the 8-year maturity and the entire price appreciation is fully exempt. Exit after 5 years on an exchange instead? LTCG 12.5% applies. So the SGB play is binary: hold-to-maturity = tax-free gold; anything else = just another taxable asset. No fresh tranches lately — check stock-exchange listings for older series at discount.

By TaxSetu Editorial Team · Last reviewed: 7 October 2026

Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in

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Frequently Asked Questions

What is the tax on selling gold jewellery?+

Held over 24 months: 12.5% LTCG without indexation. Up to 24 months: slab rate. Same for coins, bars and pre-Apr-2023 gold ETF units.

Is SGB maturity tax-free?+

Yes — redemption with RBI at maturity is fully exempt for individuals. The 2.5% yearly interest is taxable, and exchange sales follow normal CG rules.

Are gold ETFs taxed at slab?+

Units bought after April 2023 are taxed at slab always; older gold-fund units kept the 12.5% LTCG treatment after 24 months.

Is inherited gold taxable?+

No tax on receipt. Your cost is the previous owner's cost and their holding period counts toward your 24 months.