How gold is taxed when you sell
| Type of gold | Long-term after | Long-term tax | Short-term tax |
|---|---|---|---|
| Jewellery, coins, bars, digital gold | 24 months | 12.5%, no indexation | Your slab rate |
| Gold ETFs (listed) | 12 months | 12.5% | Your slab rate |
| Gold mutual funds (fund of funds) | 24 months | 12.5% | Your slab rate |
Plus 4% cess, and surcharge if your income is above ₹50 lakh (capped at 15% on long-term gains). Keep the original bill: without it, proving your cost is hard.
Buying gold this Dhanteras
- GST: 3% on the value of the gold, plus 5% on making charges.
- PAN: needed for jewellery purchases of ₹2 lakh or more.
- Cash: a jeweller cannot accept ₹2 lakh or more in cash from you for one purchase; pay by card, UPI or bank transfer.
- Exchanging old jewellery: swapping old gold for new is treated as selling the old piece, so a gain can arise.
Gold as a gift
Gold received from relatives, or on your marriage, is not taxed. Gifts from friends and others are taxed as income if their total value in the year is above ₹50,000. When you later sell gifted or inherited gold, the original owner’s cost and holding period carry over to you.
How much gold can you keep at home?
There is no legal limit on owning gold you can explain. Under CBDT Instruction No. 1916 (1994), during a tax search officers do not seize jewellery up to 500 g for a married woman, 250 g for an unmarried woman and 100 g for a man, even without documents. Above that, keep bills, gift records or inheritance papers.
NRIs bringing gold to India: customs rules apply. See NRI tax services. Selling property instead? Use the property capital gains calculator.