Understanding Capital Gains Tax on Precious Metals
✍️ Author: Bhavesh Bishnoi
📅 Created: June 02, 2026
Capital gains tax is an important consideration for investors in precious metals like gold and silver. In India, the tax treatment depends on the holding period of the asset. For physical gold and silver, if the asset is sold within 36 months of purchase, the gains are considered short-term capital gains and are taxed according to the investor's income tax slab. If sold after 36 months, the gains are long-term capital gains and are taxed at 20% with indexation benefits.
Frequently Asked Questions
❓ What is indexation in capital gains tax?
Indexation adjusts the purchase price of an asset for inflation, reducing the taxable capital gain.
❓ Are gold ETFs taxed differently from physical gold?
Gold ETFs are taxed similarly to physical gold, with long-term capital gains taxed at 20% with indexation if held for more than 36 months.