Physical gold vs gold ETF: Which saves more tax when you sell your gold?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Buying gold this Diwali requires careful tax planning.
- ✓Physical gold attracts 3% GST at purchase, while gold ETFs do not.
- ✓Physical gold needs a 24-month holding period for long-term capital gains tax, but ETFs qualify after just 12 months.
Story at a Glance
- Category
- Indian Markets
- Reported By
- The Economic Times
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Buying gold this Diwali? Before choosing between jewellery, coins, bars or gold ETFs, look beyond the price of gold. The tax you pay when buying and selling can affect your final returns. Gold ETFs have a shorter holding period for long-term capital gains tax, while physical gold attracts GST at the time of purchase.
The tax on physical gold depends on how long you hold it. If you sell jewellery, coins or bars within 24 months of purchase, the profit is treated as short-term capital gains (STCG) and taxed at your applicable income-tax slab rate. If you sell after 24 months, the gain qualifies as long- term capital gains (LTCG) and is taxed at 12.5%, plus surcharge and cess, without indexation.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
The Economic Times
Read the full, original unfiltered story directly on the publisher's portal.
This brief is for information only and is not investment advice. ArthNow is not a SEBI-registered investment adviser and does not publish buy or sell recommendations. Original reporting is credited to the publisher named above. Read our editorial policy or report an error.