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.
In today’s evolving financial ecosystem, fraud risks are becoming increasingly sophisticated, particularly in areas involving government-sponsored schemes and dormant bank… Read More
Compulsory disclosure of taxpayer Bank Balances in ITR‑4 CBDT has introduced a significant compliance requirement via Notification No. 45/2026 dated… Read More
CBDT Introduces New Procedure for PAN Correction In a parallel development under the new income tax framework, the Central Board… Read More
Overview of China's Tax System vs. India's Tax System Overall Structure Framework India: Federal dual-tax model, Center + state powers,… Read More
Key Tax Deducted at Source Compliance Issues under Section 194T Section 194T significantly increases compliance rigor by imposing gross-based, real-time… Read More
Income Tax Return Due Dates for FY 2025‑26 (AY 2026‑27) Timely filing of an income tax return ensures avoidance of… Read More