Page Contents
| Tax Aspect | Gold Coin | Gold Jewellery |
|---|---|---|
| ITR Reporting | Treated as a capital asset. Must be reported under “Capital Gains” if sold. | Same as gold coin – report in ITR under “Capital Gains” when sold. |
| Capital Gains Tax (CGT) | – Short-Term (STCG): If held ≤ 3 years → Taxed at slab rate. – Long-Term (LTCG): If held > 3 years → 20% with indexation. | Same rule as coins (STCG if ≤ 3 years, LTCG if > 3 years with 20% + indexation). |
| GST on Purchase | 3% GST on value of gold coin. | 3% GST on gold value + 5% GST on making charges (higher impact due to design/labour). |
| GST on Sale by Dealer | Dealers must charge GST @3% if selling new coins. Individuals selling back to jeweller (for investment redemption) – GST not levied, only resale value paid. | Dealers/jewellers charge GST @3% on new jewellery + 5% on making charges. Individuals selling used jewellery → No GST, only resale value. |
| Resale Deduction Impact | Value usually closer to market price (minimal deductions). | Resale value reduced due to deduction of making charges, wastage, and purity adjustments. |
| TDS on Purchase | If purchase > ₹2 lakh in cash → PAN mandatory; if > ₹10 lakh in cash → TDS u/s 194Q may apply for business transactions. | Same rule applies. |
Nature of Inherited Gold : No tax is levied at the time of inheritance. Receiving gold through inheritance (from parents, grandparents, etc.) is not taxable in itself. It is exempt under Section 56(2)(x) of the Income Tax Act. Inherited gold is not treated as income under the Income Tax Act.
LTCG = Sale Price – Indexed Cost of Acquisition
Tax Payable = 20% of LTCG + applicable surcharge/cess
Capital Gains Taxation : Same for both (coins & jewellery) under Income Tax Act.
GST Impact :Jewellery costs more due to GST on making charges, while coins are more tax-efficient.
Resale Taxation : No GST on resale by individuals, but jewellery loses value due to non-tax factors (making/wastage).
Applies only to sale of physical gold (not ETFs/SGBs):
| Gold Form | LTCG Holding | LTCG Rate | Indexation | STCG |
|---|---|---|---|---|
| SGB (RBI maturity) | 8 years | Tax-Free | NA | NA |
| SGB (Premature, Exchange) | ≥12m | 12.5% | No | Slab |
| Gold ETF / MF | ≥12m | 12.5% | No | Slab |
| Physical Gold / Jewellery / Coins | ≥12m | 12.5% | No | Slab |
| Digital Gold | ≥12m | 12.5% | No | Slab |
Always evaluate gold on a post‑tax and portfolio‑allocation basis, not just pre‑tax return.
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