New Gold Tax Rules 2025:
The government has recently introduced new gold tax rules, effective from July 2024, that change how investors pay tax on gold and related investments. If you invest in physical gold, gold ETFs, or gold mutual funds, you should know how these new tax rates affect your profits.

New Gold Tax Rules 2025:

For years, gold has been one of the safest investments in India. With prices touching ₹1.10 lakh per 10 grams for 22K gold, investors are making good profits. However, under the new system, you must pay tax on the gains you make when selling gold — whether it’s jewellery, coins, or digital gold investments.

New Gold Tax Rules Explained

When you buy gold, no income tax applies. However, you must pay 3% GST on the purchase and another 5% GST on making charges for jewellery.

If you sell gold within 24 months of buying it, your profit will be considered short-term capital gain (STCG). This amount is added to your total income and taxed according to your income tax slab.

If you sell gold after 24 months, it is treated as a long-term capital gain (LTCG), and a flat 12.5% tax will apply. Earlier, investors could claim indexation benefits (adjusting for inflation), but this option is now removed.

For gold ETFs and mutual funds, if you sell them within 12 months, STCG tax will apply based on your income slab. If you hold them for more than 12 months, you will pay a 12.5% LTCG tax.

Meanwhile, Sovereign Gold Bonds (SGBs) are still tax-free if held till maturity. However, if you sell them before maturity, you must pay tax 12.5% if sold after one year, or slab-based tax if sold earlier.

These rules aim to bring uniformity in gold taxation and reduce misuse in gold trading. Investors are advised to plan carefully before selling or switching gold assets.

ALSO READ: Do You Know Which Tollywood Star Missed Acting in Kantara?

Share

• 
• 
• 
• 
• 
•