{"id":32964,"date":"2026-08-30T00:59:55","date_gmt":"2026-08-29T19:29:55","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=32964"},"modified":"2026-08-30T01:38:05","modified_gmt":"2026-08-29T20:08:05","slug":"taxation-of-etfs-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/taxation-of-etfs-in-india\/","title":{"rendered":"All About Taxation of ETFs in India"},"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-6a937a3e82673\" 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-6a937a3e82673\"  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-of-etfs-in-india\/#Taxation_of_Exchange_Traded_Funds_ETFs_in_India\" title=\"Taxation of Exchange Traded Funds (ETFs) in India\">Taxation of Exchange Traded Funds (ETFs) in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/taxation-of-etfs-in-india\/#STCG_Tax_Rate\" title=\"STCG Tax Rate\">STCG Tax Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/taxation-of-etfs-in-india\/#Business_Income_Tax_Rate\" title=\"Business Income Tax Rate\">Business Income Tax Rate<\/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-of-etfs-in-india\/#Example_of_Gold_Silver_ETF_Traders\" title=\"Example of Gold &amp; Silver ETF Traders\">Example of Gold &amp; Silver ETF Traders<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-32965\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/08\/ETF.png\" alt=\"\" width=\"756\" height=\"1034\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/08\/ETF.png 400w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/08\/ETF-219x300.png 219w\" sizes=\"(max-width: 756px) 100vw, 756px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Taxation_of_Exchange_Traded_Funds_ETFs_in_India\"><\/span><span style=\"color: #000080;\">Taxation of Exchange Traded Funds (ETFs) in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\">\n<tbody>\n<tr>\n<th>Particulars<\/th>\n<th>Equity ETFs<\/th>\n<th>Gold &amp; Silver ETFs<\/th>\n<th>Debt ETFs<\/th>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Examples<\/strong><\/th>\n<td>Nifty 50 ETF, Sensex ETF, Bank Nifty ETF, Bharat 22 ETF<\/td>\n<td>Nippon Gold ETF, HDFC Gold ETF, SBI Silver ETF<\/td>\n<td>Bharat Bond ETF, Government Bond ETF, Corporate Bond ETF<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Source of Income<\/strong><\/th>\n<td>Dividend &amp; Capital Gains<\/td>\n<td>Dividend &amp; Capital Gains<\/td>\n<td>Dividend &amp; Capital Gains<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Dividend Taxation<\/strong><\/th>\n<td>Taxable at investor&#8217;s slab rate<\/td>\n<td>Taxable at investor&#8217;s slab rate<\/td>\n<td>Taxable at investor&#8217;s slab rate<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Short-Term Capital Gains\u00a0 Holding Period<\/strong><\/th>\n<td>Up to 12 months<\/td>\n<td>Up to 12 months<\/td>\n<td>Not relevant for units acquired on or after 01.04.2023<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">\n<h3><span class=\"ez-toc-section\" id=\"STCG_Tax_Rate\"><\/span><span style=\"color: #000080;\"><strong>STCG Tax Rate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/th>\n<td>20% u\/s 111A (subject to STT)<\/td>\n<td>Taxed at normal slab rates<\/td>\n<td>Taxed at normal slab rates<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>LTCG Holding Period<\/strong><\/th>\n<td>More than 12 months<\/td>\n<td>More than 12 months<\/td>\n<td>No separate LTCG benefit for units acquired on or after 01.04.2023<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Long-Term Capital Gains Tax Rate<\/strong><\/th>\n<td>12.5% on gains exceeding \u20b91.25 lakh<\/td>\n<td>12.5% without indexation<\/td>\n<td>Taxed at normal slab rates<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Indexation Benefit<\/strong><\/th>\n<td>Not Available<\/td>\n<td>Not Available<\/td>\n<td>Not Available<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>STT Requirement<\/strong><\/th>\n<td>Required for concessional tax treatment<\/td>\n<td>Not applicable<\/td>\n<td>Not applicable<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Expenses Allowed Against Capital Gains<\/strong><\/th>\n<td>Brokerage, transfer-related expenses, stamp duty<\/td>\n<td>Brokerage, transfer-related expenses, stamp duty<\/td>\n<td>Brokerage, transfer-related expenses, stamp duty<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>STT Deduction<\/strong><\/th>\n<td>Not Allowed<\/td>\n<td>Not Allowed<\/td>\n<td>Not Allowed<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>ITR for Investor<\/strong><\/th>\n<td>ITR-2 (Capital Gains)<\/td>\n<td>ITR-2 (Capital Gains)<\/td>\n<td>ITR-2 (Capital Gains)<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Frequent Trading Treatment<\/strong><\/th>\n<td>May be treated as Business Income<\/td>\n<td>May be treated as Business Income<\/td>\n<td>May be treated as Business Income<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">\n<h3><span class=\"ez-toc-section\" id=\"Business_Income_Tax_Rate\"><\/span><span style=\"color: #000080;\"><strong>Business Income Tax Rate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/th>\n<td>Normal slab rates<\/td>\n<td>Normal slab rates<\/td>\n<td>Normal slab rates<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Expenses Allowed in this Business <\/strong><\/th>\n<td>Brokerage, Demat charges, internet, software, research subscription, advisory fees, audit fees<\/td>\n<td>Same<\/td>\n<td>Same<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Loss Carry Forward (Business Income)<\/strong><\/th>\n<td>Up to 8 years<\/td>\n<td>Up to 8 years<\/td>\n<td>Up to 8 years<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Closing Stock Required<\/strong><\/th>\n<td>Yes, if treated as business<\/td>\n<td>Yes, if treated as business<\/td>\n<td>Yes, if treated as business<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>ITR Form for Business Activity<\/strong><\/th>\n<td>ITR-3<\/td>\n<td>ITR-3<\/td>\n<td>ITR-3<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Nature of Business Code<\/strong><\/th>\n<td>21011 \u2013 Buying &amp; Selling of Shares<\/td>\n<td>21011 \u2013 Buying &amp; Selling of Shares<\/td>\n<td>21011 \u2013 Buying &amp; Selling of Shares<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Tax Audit Applicability<\/strong><\/th>\n<td>As per Section 44AB turnover limits<\/td>\n<td>As per Section 44AB turnover limits<\/td>\n<td>As per Section 44AB turnover limits<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"Example_of_Gold_Silver_ETF_Traders\"><\/span><span style=\"color: #000080;\">Example of Gold &amp; Silver ETF Traders<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\">\n<tbody>\n<tr>\n<th>Particulars<\/th>\n<th>Position<\/th>\n<\/tr>\n<tr>\n<td>Buy Transactions<\/td>\n<td>559<\/td>\n<\/tr>\n<tr>\n<td>Sell Transactions<\/td>\n<td>559<\/td>\n<\/tr>\n<tr>\n<td>Holding Period<\/td>\n<td>Mostly within a week (maximum 111 days)<\/td>\n<\/tr>\n<tr>\n<td>Closing Stock<\/td>\n<td>Available at year-end<\/td>\n<\/tr>\n<tr>\n<td>Nature of Activity<\/td>\n<td>Frequent, systematic, organized trading<\/td>\n<\/tr>\n<tr>\n<td>Likely Tax Head<\/td>\n<td>Profits &amp; Gains from Business or Profession<\/td>\n<\/tr>\n<tr>\n<td>Business Type<\/td>\n<td>Non-Speculative Business<\/td>\n<\/tr>\n<tr>\n<td>Recommended ITR<\/td>\n<td>ITR-3<\/td>\n<\/tr>\n<tr>\n<td>Business Code<\/td>\n<td>21011 &#8211; Buying and Selling of Shares<\/td>\n<\/tr>\n<tr>\n<td>Closing Stock Treatment<\/td>\n<td>Valued at Cost or NRV, whichever is lower<\/td>\n<\/tr>\n<tr>\n<td>Loss Treatment<\/td>\n<td>Non-speculative business loss can be carried forward for 8 years<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>For frequent Gold &amp; Silver ETF trading involving 559 buys and 559 sells with short holding periods, the activity is more appropriately reportable in ITR-3 under Business Code 21011 (Buying and Selling of Shares) as non-speculative business income, subject to consistency with past tax positions and tax audit provisions.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Taxation of Exchange Traded Funds (ETFs) in India Particulars Equity ETFs Gold &amp; Silver ETFs Debt ETFs Examples Nifty 50 ETF, Sensex ETF, Bank Nifty ETF, Bharat 22 ETF Nippon Gold ETF, HDFC Gold ETF, SBI Silver ETF Bharat Bond ETF, Government Bond ETF, Corporate Bond ETF Source of Income Dividend &amp; Capital Gains Dividend &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[10542],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32964"}],"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=32964"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32964\/revisions"}],"predecessor-version":[{"id":32969,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32964\/revisions\/32969"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=32964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=32964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=32964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}