How much tax govt levies on gold?:Jewelleries, coins attract 12.5% tax after 2 years of holding; gold mutual funds attract similar levies after 12 months

Gold has corrected over ₹5,677 per 10 gram (gm) in the last few days. According to the India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24-carat gold has fallen to ₹1,23,907 per 10 gm. The yellow metal had made an all-time high of ₹1,29,584 per 10 gm on 17 October 2025. Thinking of investing in gold? It’s not just about buying gold; you also need to understand the taxes you’ll pay. Here’s a simple breakdown: Gold ETFs and Gold Mutual Funds (MFs): If somebody sells Gold ETFs and Gold Mutual Funds (MFs) after holding for up to 12 months, the profit is added to their income and taxed at the applicable income tax slab rate. If sold after 12 months, then, long-term capital gains (LTCG) tax at 12.5% without indexation benefits is levied. Gold Bullion (Bars, Coins): Short-term gains (up to 2 years) are taxed at the applicable income tax slab rate of the investor. While, Long-term gains (holdings of more than 2 years) are taxed at 12.5% without indexation benefits. Gold Jewellery: Taxed similarly to bullion. Short-term capital gains (held for up to 2 years) are added to the investor’s income and taxed as per his slab. While, long-term capital gains (held for more than 2 years) are taxed at 12.5% without indexation. Tax on Physical Gold eg coins, bars jewellery Sovereign Gold Bonds (SGBs): These are a bit different. The annual interest of 2.50% you earn is taxed as per your income tax slab. However, if you hold the SGB until maturity (8 years), the profit you make is completely tax-free. There is no LTCG tax levied on profits made after eight years in case of such gold bonds. If you convert these in demat format and sell those on the stock exchange before maturity of eight years , then, short term or capital gains tax would be applicable as per duration of the holding. Similar to Gold ETFs and Gold MFs, if the holding period of SGBs held in demat format is up to 12 months, then, the applicable income tax slab rate of the investor would be imposed. While, if the holding period is more than 12 months, then, LTCG tax of 12.5% would be imposed on profits made. And, if the subscriber opts for the premature redemption of SGBs ie after five years of holding but before eight years, then, no capital gains tax would be applicable. Plus, no GST is levied upfront on subscribing the government gold bonds. Gold ETF/MF SGBs (demat format)