{"id":30068,"date":"2025-09-27T23:36:15","date_gmt":"2025-09-27T18:06:15","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30068"},"modified":"2026-01-23T01:42:40","modified_gmt":"2026-01-22T20:12:40","slug":"taxation-comparison-gold-coin-vs-gold-jewellery","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/","title":{"rendered":"Taxation Comparison: Gold Coin vs Gold Jewellery"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e87c10ef8a4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e87c10ef8a4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Taxation_Comparison_Gold_Coin_vs_Gold_Jewellery\" title=\"Taxation Comparison: Gold Coin vs Gold Jewellery\">Taxation Comparison: Gold Coin vs Gold Jewellery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Tax_Implications_of_Selling_Inherited_Gold\" title=\"Tax Implications of Selling Inherited Gold\">Tax Implications of Selling Inherited Gold<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#When_Does_Tax_Arise\" title=\"When Does Tax Arise?\">When Does Tax Arise?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#How_Is_Tax_Calculated\" title=\"How Is Tax Calculated?\">How Is Tax Calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Summary_Taxation_Comparison_Gold_Coin_vs_Gold_Jewellery\" title=\"Summary: Taxation Comparison: Gold Coin vs Gold Jewellery\">Summary: Taxation Comparison: Gold Coin vs Gold Jewellery<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Tax_Guide_for_Gold_FY_2025%E2%80%9326_%E2%80%93_Jewellery_Coins_ETF_SGB_Digital_Gold\" title=\"Tax Guide for Gold (FY 2025\u201326) &#8211; Jewellery | Coins | ETF | SGB | Digital Gold\">Tax Guide for Gold (FY 2025\u201326) &#8211; Jewellery | Coins | ETF | SGB | Digital Gold<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Why_Gold_Matters_in_2025\" title=\"Why Gold Matters in 2025\">Why Gold Matters in 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Sovereign_Gold_Bonds_SGBs%E2%80%94Tax_Treatment\" title=\"Sovereign Gold Bonds (SGBs)\u2014Tax Treatment\">Sovereign Gold Bonds (SGBs)\u2014Tax Treatment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Interest\" title=\"Interest\">Interest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Capital_Gains_Sale_on_Exchange\" title=\"Capital Gains (Sale on Exchange)\">Capital Gains (Sale on Exchange)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#under_Capital_Gains_On_Redemption_After_8_Years\" title=\"under Capital Gains (On Redemption After 8 Years)\">under Capital Gains (On Redemption After 8 Years)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Gold_ETFs_vs_Gold_Mutual_Funds\" title=\"Gold ETFs vs. Gold Mutual Funds\">Gold ETFs vs. Gold Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Gold_ETFs\" title=\"Gold ETFs\">Gold ETFs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Gold_Mutual_Funds_FoFs\" title=\"Gold Mutual Funds \/ FoFs\">Gold Mutual Funds \/ FoFs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Physical_Gold_Coins_Digital_Gold\" title=\"Physical Gold, Coins &amp; Digital Gold\">Physical Gold, Coins &amp; Digital Gold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Physical_Gold\" title=\"Physical Gold\">Physical Gold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Digital_Gold\" title=\"Digital Gold\">Digital Gold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Gold_Futures_Options_F_O\" title=\"Gold Futures &amp; Options (F&amp;O)\">Gold Futures &amp; Options (F&amp;O)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Inheritance_Gifting\" title=\"Inheritance &amp; Gifting\">Inheritance &amp; Gifting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Inheritance\" title=\"Inheritance\">Inheritance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Gifts\" title=\"Gifts\">Gifts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Capital_Gains_Saving_Options\" title=\"Capital Gains Saving Options\">Capital Gains Saving Options<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Section_54F\" title=\"Section 54F\">Section 54F<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Section_54EC\" title=\"Section 54EC\">Section 54EC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/carajput.com\/blog\/taxation-comparison-gold-coin-vs-gold-jewellery\/#Summary_Table_Quick_View\" title=\"Summary Table (Quick View)\">Summary Table (Quick View)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-30064\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Gold-Coin-vs-Gold-Jewellery-1.jpg\" alt=\"Gold Coin vs Gold Jewellery.\" width=\"961\" height=\"1451\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Gold-Coin-vs-Gold-Jewellery-1.jpg 848w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Gold-Coin-vs-Gold-Jewellery-1-199x300.jpg 199w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Gold-Coin-vs-Gold-Jewellery-1-678x1024.jpg 678w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Gold-Coin-vs-Gold-Jewellery-1-768x1159.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Gold-Coin-vs-Gold-Jewellery-1-800x1208.jpg 800w\" sizes=\"(max-width: 961px) 100vw, 961px\" \/><\/p>\n<h2 data-start=\"123\" data-end=\"177\"><span class=\"ez-toc-section\" id=\"Taxation_Comparison_Gold_Coin_vs_Gold_Jewellery\"><\/span><span style=\"color: #000080;\"><strong data-start=\"125\" data-end=\"177\">Taxation Comparison: Gold Coin vs Gold Jewellery<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"_tableContainer_1rjym_1\">\n<div class=\"group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"179\" data-end=\"1552\">\n<thead data-start=\"179\" data-end=\"234\">\n<tr data-start=\"179\" data-end=\"234\">\n<th data-start=\"179\" data-end=\"196\" data-col-size=\"sm\"><strong data-start=\"181\" data-end=\"195\">Tax Aspect<\/strong><\/th>\n<th data-start=\"196\" data-end=\"212\" data-col-size=\"lg\"><strong data-start=\"198\" data-end=\"211\">Gold Coin<\/strong><\/th>\n<th data-start=\"212\" data-end=\"234\" data-col-size=\"lg\"><strong data-start=\"214\" data-end=\"232\">Gold Jewellery<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"292\" data-end=\"1552\">\n<tr data-start=\"292\" data-end=\"468\">\n<td data-start=\"292\" data-end=\"312\" data-col-size=\"sm\">ITR Reporting<\/td>\n<td data-start=\"312\" data-end=\"396\" data-col-size=\"lg\">Treated as a capital asset. Must be reported under <em data-start=\"369\" data-end=\"386\">\u201cCapital Gains\u201d<\/em> if sold.<\/td>\n<td data-start=\"396\" data-end=\"468\" data-col-size=\"lg\">Same as gold coin \u2013 report in ITR under <em data-start=\"438\" data-end=\"455\">\u201cCapital Gains\u201d<\/em> when sold.<\/td>\n<\/tr>\n<tr data-start=\"469\" data-end=\"718\">\n<td data-start=\"469\" data-end=\"499\" data-col-size=\"sm\">Capital Gains Tax (CGT)<\/td>\n<td data-start=\"499\" data-end=\"634\" data-col-size=\"lg\">&#8211; Short-Term (STCG): If held \u2264 3 years \u2192 Taxed at slab rate.<br \/>\n&#8211; Long-Term (LTCG): If held &gt; 3 years \u2192 20% with indexation.<\/td>\n<td data-start=\"634\" data-end=\"718\" data-col-size=\"lg\">Same rule as coins (STCG if \u2264 3 years, LTCG if &gt; 3 years with 20% + indexation).<\/td>\n<\/tr>\n<tr data-start=\"719\" data-end=\"866\">\n<td data-start=\"719\" data-end=\"741\" data-col-size=\"sm\">GST on Purchase<\/td>\n<td data-start=\"741\" data-end=\"773\" data-col-size=\"lg\">3% GST on value of gold coin.<\/td>\n<td data-start=\"773\" data-end=\"866\" data-col-size=\"lg\">3% GST on gold value + 5% GST on making charges (higher impact due to design\/labour).<\/td>\n<\/tr>\n<tr data-start=\"867\" data-end=\"1195\">\n<td data-start=\"867\" data-end=\"895\" data-col-size=\"sm\">GST on Sale by Dealer<\/td>\n<td data-start=\"895\" data-end=\"1054\" data-col-size=\"lg\">Dealers must charge GST @3% if selling new coins. Individuals selling back to jeweller (for investment redemption) \u2013 GST not levied, only resale value paid.<\/td>\n<td data-start=\"1054\" data-end=\"1195\" data-col-size=\"lg\">Dealers\/jewellers charge GST @3% on new jewellery + 5% on making charges. Individuals selling used jewellery \u2192 No GST, only resale value.<\/td>\n<\/tr>\n<tr data-start=\"1196\" data-end=\"1384\">\n<td data-start=\"1196\" data-end=\"1226\" data-col-size=\"sm\">Resale Deduction Impact<\/td>\n<td data-start=\"1226\" data-end=\"1287\" data-col-size=\"lg\">Value usually closer to market price (minimal deductions).<\/td>\n<td data-start=\"1287\" data-end=\"1384\" data-col-size=\"lg\">Resale value reduced due to deduction of making charges, wastage, and purity adjustments.<\/td>\n<\/tr>\n<tr data-start=\"1385\" data-end=\"1552\">\n<td data-start=\"1385\" data-end=\"1407\" data-col-size=\"sm\">TDS on Purchase<\/td>\n<td data-start=\"1407\" data-end=\"1530\" data-col-size=\"lg\">If purchase &gt; \u20b92 lakh in cash \u2192 PAN mandatory; if &gt; \u20b910 lakh in cash \u2192 TDS u\/s 194Q may apply for business transactions.<\/td>\n<td data-start=\"1530\" data-end=\"1552\" data-col-size=\"lg\">Same rule applies.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Tax_Implications_of_Selling_Inherited_Gold\"><\/span><span style=\"color: #000080;\"><strong>Tax Implications of Selling Inherited Gold<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-30070\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-27-233824.png\" alt=\"Tax on Inheritance\" width=\"931\" height=\"1374\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-27-233824.png 393w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-27-233824-203x300.png 203w\" sizes=\"(max-width: 931px) 100vw, 931px\" \/><\/p>\n<p>Nature of Inherited Gold : <span style=\"font-size: 16px;\">No tax<\/span><span style=\"font-size: 16px;\"> is levied at the time of inheritance.\u00a0<\/span><span style=\"font-size: 16px;\">Receiving gold through inheritance<\/span><span style=\"font-size: 16px;\"> (from parents, grandparents, etc.) is <\/span><span style=\"font-size: 16px;\">not taxable<\/span><span style=\"font-size: 16px;\"> in itself.\u00a0<\/span><span style=\"font-size: 16px;\">It is <\/span><span style=\"font-size: 16px;\">exempt under Section 56(2)(x)<\/span><span style=\"font-size: 16px;\"> of the Income Tax Act.\u00a0<\/span><span style=\"font-size: 16px;\">Inherited gold is <\/span><span style=\"font-size: 16px;\">not treated as income<\/span><span style=\"font-size: 16px;\"> under the Income Tax Act.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_Does_Tax_Arise\"><\/span><span style=\"color: #000080;\"><strong>When Does Tax Arise?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Tax is applicable only when you sell the inherited gold.\u00a0When you sell inherited gold, the capital gains tax applies.<\/li>\n<\/ul>\n<ul>\n<li>The gain is calculated as Sale Price \u2013 Indexed Cost of Acquisition<\/li>\n<\/ul>\n<ul>\n<li>Capital Gains Tax is calculated based on:\n<ul>\n<li>Original purchase price by the previous owner (e.g., parent\/grandparent), or<\/li>\n<li>Fair Market Value (FMV) as on 1st April 2001 (if acquired before that date).<\/li>\n<\/ul>\n<\/li>\n<li>Holding Period: Always treated as a Long-Term Capital Asset.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"How_Is_Tax_Calculated\"><\/span><span style=\"color: #000080;\"><strong>How Is Tax Calculated?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Always treated as Long-Term Capital Gain (LTCG), regardless of how long you held it, because the holding period of the original owner is also counted.<\/li>\n<li>You can use Cost Inflation Index (CII) to adjust the original purchase price.\u00a0If the gold was acquired before April 1, 2001, you can use the Fair Market Value (FMV) as on April 1, 2001 as the base.\u00a0Use Indexed Cost of Acquisition (adjusted using the Cost Inflation Index).<\/li>\n<li>LTCG on gold is taxed at 20% with indexation under Section 112 of the Income Tax Act. &amp; Surcharge and cess may apply additionally.\u00a0Tax Rate is 20% LTCG tax + Surcharge + Health &amp; Education Cess.<\/li>\n<li>Example:<br \/>\n<blockquote><p>LTCG = Sale Price \u2013 Indexed Cost of Acquisition<br \/>\nTax Payable = 20% of LTCG + applicable surcharge\/cess<\/p><\/blockquote>\n<\/li>\n<\/ul>\n<ul>\n<li>Exemptions &amp; Savings Options<\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Section 54F: Reinvest entire sale proceeds in a residential house (subject to conditions).<\/li>\n<li>under Section 54EC: Invest up to INR 30 lakh in Capital Gain Bonds (e.g., NHAI, REC) within 6 months of sale.<\/li>\n<\/ul>\n<\/li>\n<li>Documentation to Keep<\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Proof of inheritance (will, gift deed, legal heir certificate)<\/li>\n<li>Original purchase invoice (if available)<\/li>\n<li>Valuation certificate (especially if FMV as on 01.04.2001 is used)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"1559\" data-end=\"1575\"><span class=\"ez-toc-section\" id=\"Summary_Taxation_Comparison_Gold_Coin_vs_Gold_Jewellery\"><\/span><strong><span style=\"color: #000080;\">Summary: Taxation Comparison: Gold Coin vs Gold Jewellery<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1576\" data-end=\"1898\">\n<li data-start=\"1576\" data-end=\"1664\">\n<p data-start=\"1578\" data-end=\"1664\">Capital Gains Taxation : Same for both (coins &amp; jewellery) under Income Tax Act.<\/p>\n<\/li>\n<li data-start=\"1665\" data-end=\"1772\">\n<p data-start=\"1667\" data-end=\"1772\">GST Impact :Jewellery costs more due to GST on making charges, while coins are more tax-efficient.<\/p>\n<\/li>\n<li data-start=\"1773\" data-end=\"1898\">\n<p data-start=\"1775\" data-end=\"1898\">Resale Taxation : No GST on resale by individuals, but jewellery loses value due to non-tax factors (making\/wastage).<\/p>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<div>\n<h2><span class=\"ez-toc-section\" id=\"Tax_Guide_for_Gold_FY_2025%E2%80%9326_%E2%80%93_Jewellery_Coins_ETF_SGB_Digital_Gold\"><\/span><span style=\"color: #000080;\"><strong>Tax Guide for Gold (FY 2025\u201326) &#8211; <em>Jewellery | Coins | ETF | SGB | Digital Gold<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31029\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/gold-.jpg\" alt=\"Tax Guide for Gold\" width=\"882\" height=\"1280\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/gold-.jpg 882w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/gold--207x300.jpg 207w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/gold--706x1024.jpg 706w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/gold--768x1115.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/gold--800x1161.jpg 800w\" sizes=\"(max-width: 882px) 100vw, 882px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_Gold_Matters_in_2025\"><\/span><span style=\"color: #000080;\"><strong>Why Gold Matters in 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Gold has historically outperformed during periods of inflation and geo\u2011political uncertainty.\u00a0\u00a0Gold outperformed during volatility<\/li>\n<li>Post\u2011tax returns vary significantly across gold investment options\u2014understanding taxation is essential for better portfolio decisions.\u00a0 Taxation materially affects post\u2011tax returns<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Sovereign_Gold_Bonds_SGBs%E2%80%94Tax_Treatment\"><\/span><span style=\"color: #000080;\"><strong>Sovereign Gold Bonds (SGBs)\u2014Tax Treatment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Interest\"><\/span><span style=\"color: #000080;\"><strong>Interest<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>2.5% interest taxable under \u201cIncome from Other Sources\u201d<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Capital_Gains_Sale_on_Exchange\"><\/span><span style=\"color: #000080;\"><strong>Capital Gains (Sale on Exchange)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Sold before maturity\n<ul>\n<li>&lt; 12 months \u2192 STCG (taxed at slab rate)<\/li>\n<li>\u2265 12 months \u2192 LTCG @ 12.5% (no indexation)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"under_Capital_Gains_On_Redemption_After_8_Years\"><\/span><span style=\"color: #000080;\"><strong>under Capital Gains (On Redemption After 8 Years)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Completely Tax\u2011Free<\/li>\n<li>Best post\u2011tax gold instrument if held till maturity<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Gold_ETFs_vs_Gold_Mutual_Funds\"><\/span><span style=\"color: #000080;\"><strong>Gold ETFs vs. Gold Mutual Funds<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Gold_ETFs\"><\/span><span style=\"color: #000080;\"><strong>Gold ETFs<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>LTCG: \u2265 12 months \u2192 12.5%, no indexation<\/li>\n<li>STCG: slab rate<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Gold_Mutual_Funds_FoFs\"><\/span><span style=\"color: #000080;\"><strong>Gold Mutual Funds \/ FoFs<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Same taxation as ETFs<\/li>\n<li>ETF listing performance impacts FoFs indirectly<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Physical_Gold_Coins_Digital_Gold\"><\/span><span style=\"color: #000080;\"><strong>Physical Gold, Coins &amp; Digital Gold<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Physical_Gold\"><\/span><span style=\"color: #000080;\"><strong>Physical Gold<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>3% GST on purchase<\/li>\n<li>Making charges also taxed<\/li>\n<li>On sale:\n<ul>\n<li>STCG (&lt; 12 months): slab rate<\/li>\n<li>LTCG (\u2265 12 months): 12.5%, no indexation<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Digital_Gold\"><\/span><span style=\"color: #000080;\"><strong>Digital Gold<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Same capital gains rules<\/li>\n<li>Not SEBI\/RBI regulated (buyer beware)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Gold_Futures_Options_F_O\"><\/span><span style=\"color: #000080;\"><strong>Gold Futures &amp; Options (F&amp;O)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Taxed as Business Income<\/li>\n<li>Can claim expenses: brokerage, interest, research, trading tools<\/li>\n<li>Losses can be set off as per business loss rules<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Inheritance_Gifting\"><\/span><span style=\"color: #000080;\"><strong>Inheritance &amp; Gifting<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Inheritance\"><\/span><span style=\"color: #000080;\"><strong>Inheritance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Fully Tax\u2011Free for the recipient<\/li>\n<li>Capital gains only when sold (cost = previous owner\u2019s cost)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Gifts\"><\/span><span style=\"color: #000080;\"><strong>Gifts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>From relatives: tax\u2011free<\/li>\n<li>From non\u2011relatives:\n<ul>\n<li>Value &gt; \u20b950,000 \u2192 Taxable as Income<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Capital_Gains_Saving_Options\"><\/span><span style=\"color: #000080;\"><strong>Capital Gains Saving Options<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Applies only to sale of physical gold (not ETFs\/SGBs):<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_54F\"><\/span><span style=\"color: #000080;\"><strong>Section 54F<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Invest in residential house<\/li>\n<li>Full exemption if entire sale consideration reinvested<\/li>\n<li>One house property limit<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Section_54EC\"><\/span><span style=\"color: #000080;\"><strong>Section 54EC<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Invest in REC\/NHAI Bonds<\/li>\n<li>\u20b950 lakh annual limit<\/li>\n<li>5\u2011year lock\u2011in<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Summary_Table_Quick_View\"><\/span><span style=\"color: #000080;\"><strong>Summary Table (Quick View)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___i31lg00 f10pi13n f14t3ns0 f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1hm93bs f1ddd56o f16vktn6 f1enuhaj fdclmfp f1ev3kgc ftgm304 f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f1s2k7dp f8fmt76 fjvbh62 fysh76l fic4ptz f1yenhzu f1yn6nvh f14tj6oe f1jq587y f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f70r78m f4zgifc fk1v6el f16pyhcb fo436u6 fzy4j18 fc43013 f1hmrcvb fc4t9fq fgp09rh fjnyn6r\" style=\"height: 239px;\" tabindex=\"0\" width=\"824\">\n<tbody>\n<tr>\n<th><span style=\"color: #000080;\">Gold Form<\/span><\/th>\n<th><span style=\"color: #000080;\">LTCG Holding<\/span><\/th>\n<th><span style=\"color: #000080;\">LTCG Rate<\/span><\/th>\n<th><span style=\"color: #000080;\">Indexation<\/span><\/th>\n<th><span style=\"color: #000080;\">STCG<\/span><\/th>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>SGB (RBI maturity)<\/strong><\/th>\n<td>8 years<\/td>\n<td><strong>Tax-Free<\/strong><\/td>\n<td>NA<\/td>\n<td>NA<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>SGB (Premature, Exchange)<\/strong><\/th>\n<td>\u226512m<\/td>\n<td>12.5%<\/td>\n<td>No<\/td>\n<td>Slab<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Gold ETF \/ MF<\/strong><\/th>\n<td>\u226512m<\/td>\n<td>12.5%<\/td>\n<td>No<\/td>\n<td>Slab<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Physical Gold \/ Jewellery \/ Coins<\/strong><\/th>\n<td>\u226512m<\/td>\n<td>12.5%<\/td>\n<td>No<\/td>\n<td>Slab<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Digital Gold<\/strong><\/th>\n<td>\u226512m<\/td>\n<td>12.5%<\/td>\n<td>No<\/td>\n<td>Slab<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Always evaluate gold on a <em>post\u2011tax<\/em> and <em>portfolio\u2011allocation<\/em> basis, not just pre\u2011tax return.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Taxation Comparison: Gold Coin vs Gold Jewellery Tax Aspect Gold Coin Gold Jewellery ITR Reporting Treated as a capital asset. Must be reported under \u201cCapital Gains\u201d if sold. Same as gold coin \u2013 report in ITR under \u201cCapital Gains\u201d when sold. Capital Gains Tax (CGT) &#8211; Short-Term (STCG): If held \u2264 3 years \u2192 Taxed &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[10337],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30068"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30068"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30068\/revisions"}],"predecessor-version":[{"id":31032,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30068\/revisions\/31032"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}