# Tax on Gold in India FY 2026-27: Jewellery, ETF, SGB > Tax on gold in India for FY 2026-27. Compare how jewellery, gold ETFs, gold funds and Sovereign Gold Bonds are taxed, with holding periods and 12.5% LTCG. Source: https://trykosh.com/tools/gold-tax-calculator Free tool - Capital gains # Tax on gold in India: jewellery, ETFs, funds and SGBs Gold is taxed differently depending on the form you hold it in. Pick jewellery, ETF, fund or Sovereign Gold Bond to see how long you need to hold it and the tax on your gain. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax on your gold INR 28,600 Long-term (over 24 months): 12.5%, no indexation Gain**INR 2,20,000** Effective rate**13%** You keep**INR 1,91,400** Sale value INR 6,20,000 − Purchase cost INR 4,00,000 Long-term capital gain INR 2,20,000 LTCG tax at 12.5% INR 27,500 \+ Health and education cess (4%) INR 1,100 Tax because of this gain INR 28,600 Gold has no indexation benefit now, whenever you bought it. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-gold-tax-calculator) ## How the tax on gold calculator works Physical gold (jewellery, coins, bars) and gold mutual funds or fund of funds become long-term after 24 months. Gold ETFs, being listed on a stock exchange, need only 12 months. A long-term gain on any of them is taxed at 12.5% without indexation. A short-term gain is added to your income and taxed at your slab. Indexation on gold ended for sales after 22 July 2024, even for gold bought decades ago. Unlike property, there's no option to pay 20% with indexation instead. For jewellery, your cost includes making charges and GST you paid; keep the invoice. Sovereign Gold Bonds are special. If you subscribed at the original issue and hold till redemption with the RBI, the gain on redemption is tax-free. From 1 April 2026, Budget 2026 limited that exemption to original subscribers: bonds bought on the stock exchange are taxed on redemption like a listed holding, at 12.5% after 12 months. Selling an SGB on the exchange before maturity is always taxable: 12.5% if held more than 12 months, slab rate otherwise. The 2.5% yearly interest on SGBs is taxed at your slab every year, whoever holds them. Long-term gold tax = (sale − cost) x 12.5% x 1.04 Long-term after 12 months (gold ETF, listed SGB) or 24 months (jewellery, gold funds) ## Worked example: Lakshmi sells her gold ETF units Lakshmi, a school principal in Kochi earning INR 10 lakh, bought gold ETF units for INR 3 lakh and sells them for INR 3.75 lakh 14 months later. Because ETFs are listed, 12 months is enough for long-term status. Her INR 75,000 gain is taxed at 12.5%: INR 9,375 plus cess, INR 9,750. Had she held physical gold for the same 14 months, the gain would be short-term and taxed at her slab. Tax on your gold INR 9,750 Long-term (over 12 months): 12.5%, no indexation Gain**INR 75,000** Effective rate**13%** You keep**INR 65,250** Sale value INR 3,75,000 − Purchase cost INR 3,00,000 Long-term capital gain INR 75,000 LTCG tax at 12.5% INR 9,375 \+ Health and education cess (4%) INR 375 Tax because of this gain INR 9,750 Gold has no indexation benefit now, whenever you bought it. [Load this example into the calculator ->](?type=etf&cost=300000&sale=375000&months=14&income=1000000#calculator) ## Good to know - Exchanging old jewellery for new at a jeweller is a sale for tax purposes. The gain on the old piece is taxable even though no cash changes hands. - Inherited gold takes the previous owner's cost and holding period, so it's usually long-term. Keep any old bills or a valuation. - GST of 3% applies when you buy gold, but there's no GST when you sell old gold to a jeweller as an individual. - Whether early SGB redemption through the RBI (after year 5) keeps the exemption under the Budget 2026 change is worth confirming with your bank or a CA before you redeem. ## Frequently asked questions How is gold jewellery taxed when sold? If held more than 24 months, the gain is long-term and taxed at 12.5% plus cess, with no indexation. If held 24 months or less, the gain is added to your income and taxed at your slab. Your cost includes making charges and GST paid. Are Sovereign Gold Bonds tax-free on maturity? Yes, for individuals who bought at the original issue and held them till redemption. From 1 April 2026 the exemption doesn't extend to bonds bought on the stock exchange; their redemption gain is taxed as a capital gain. Interest is always taxable. How are gold ETFs taxed in FY 2026-27? Gold ETFs held more than 12 months are taxed at 12.5% on the gain. Held 12 months or less, the gain is taxed at your slab. They're no longer treated as specified mutual funds. Is there a limit on how much gold I can keep at home? There's no legal limit on gold bought with explained income. CBDT guidelines say tax officers won't seize up to 500 grams per married woman, 250 grams per unmarried woman and 100 grams per man during searches. Is gold received as a wedding gift taxable? No. Gifts received on your marriage are exempt whatever their value, as are gifts from relatives. Other gifts above INR 50,000 a year are taxable as income. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Reserve Bank of India](https://www.rbi.org.in/) - [Union Budget 2026-27](https://www.indiabudget.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.