Verified: October 2026
How gold investments are taxed
Tax is the single biggest factor people get wrong when comparing gold options — it's not just about which grows faster, but how much you keep after exit. Below: how long you need to hold each option for favourable long-term treatment.
Long-term holding period required
Shorter bar = you qualify for long-term capital gains treatment sooner.
Gold ETF / Mutual Fund 12 months
Digital gold 36 months
Physical gold 36 months
SGB (original subscriber, to maturity) Exempt if held to maturity
Tax treatment in detail
| Option | Short-term (before threshold) | Long-term (after threshold) | Notes |
|---|---|---|---|
| Gold ETF / Mutual Fund | Taxed at your income slab rate | 12.5% flat, no indexation (after 12 months) | Same treatment as other non-equity funds since 2024 rule changes |
| Digital gold | Taxed at your income slab rate | 12.5% flat, no indexation (after 36 months) | Treated as a physical asset, not a security |
| Physical gold | Taxed at your income slab rate | 12.5% flat, no indexation (after 36 months) | Indexation benefit was removed in 2024 — a meaningful change from older advice you may still see online |
| SGB — original subscriber | Taxed at your income slab rate (if sold early) | Exempt if held to full 8-year maturity | 2.5% annual interest is always taxable at slab, regardless of holding period |
| SGB — bought on secondary market | Taxed at your income slab rate (if sold early) | Taxable at maturity too, from 1 April 2026 | This is the Budget 2026 change — full explainer |
This is general guidance, not personal tax advice. Your actual liability depends on your total income, applicable surcharge/cess, and any exemptions you qualify for — confirm with a CA before filing.