Capital Gains Tax Summary
| Asset Type | Gold |
| Purchase Value | ₹5,00,000 |
| Sale Value | ₹8,00,000 |
| Holding Period | 40 months (3 years 4 months) |
| Gain Type | LTCG (Long-Term Capital Gain) |
| Total Capital Gain | ₹3,00,000 |
| Exempt Amount | Nil |
| Taxable Gain | ₹2,40,000 |
| Tax Rate | 20% + 4% cess |
| Capital Gains Tax (inc. cess) | ₹49,920 |
Calculate Your Capital Gains Tax
Enter your purchase price, sale price, dates, and asset type to get your exact tax liability.
Use Capital Gains CalculatorFrequently Asked Questions
Is gold LTCG calculated with indexation in India?
Yes. For physical gold, digital gold, and gold ETFs held over 36 months: LTCG is calculated on gains after applying Cost Inflation Index (CII) to the purchase price. This effectively reduces your taxable gain. Tax rate is 20% + 4% cess on the indexed gain.
How is gold ETF vs physical gold taxed differently?
Gold ETFs and gold mutual funds are taxed exactly like physical gold: LTCG at 20% with indexation (if held 36+ months) or slab rate for STCG. Sovereign Gold Bonds (SGBs) issued by RBI are different — gains at maturity (8 years) are completely tax-free, making SGBs the most tax-efficient gold investment.
What is the threshold for LTCG on gold?
Unlike equity (12 months), gold requires 36 months of holding to qualify as LTCG. Gold sold within 36 months is STCG, taxed at your income slab rate (up to 30%). Plan exits accordingly — holding gold just past the 36-month mark can save significant tax through indexation benefits.
Should I invest in physical gold or Sovereign Gold Bonds?
SGBs are generally superior: they earn 2.5% annual interest, capital gains at 8-year maturity are tax-free, and there's no storage/purity risk. Physical gold has full liquidity and cultural value. Gold ETFs sit in between — liquid, pure, but taxable. For long-term investment, SGBs win on tax efficiency.
How do I report gold sales in ITR?
Report in Schedule CG in ITR-2 or ITR-3. LTCG on gold goes under 'LTCG on assets other than listed equity'. You need purchase proof (jeweller invoice or demat statement for ETFs), sale receipt, and CII values for your purchase and sale years. Keep all sale receipts — jewellers now report cash sales above ₹2 lakh.