At a glance
| Option | Extra costs | Long-term after | Tax when you sell |
|---|---|---|---|
| Jewellery | 3% GST, making charges | 24 months | 12.5%, or slab rate before |
| Coins and bars | 3% GST | 24 months | 12.5%, or slab rate before |
| Digital gold | 3% GST, buy-sell spread | 24 months | 12.5%, or slab rate before |
| Gold ETF | Brokerage, fund expense ratio | 12 months | 12.5%, or slab rate before |
| Gold mutual fund | Fund expense ratio | 24 months | 12.5%, or slab rate before |
| Gold bonds (existing, on the exchange) | Brokerage | 12 months | Tax-free at maturity |
Tax is on the gain, plus 4% cess. None of these get the ₹1.25 lakh tax-free limit, which is only for shares and equity funds.
If you want to wear it: jewellery
- Making charges and 3% GST are part of the price, and you don't get them back when you sell.
- Check the hallmark: the BIS logo, the purity, and a 6-digit HUID. Selling hallmarked gold jewellery without a HUID isn't allowed since 1 April 2023.
- Verify the HUID in the BIS Care app before you pay.
- Give your PAN for a purchase over ₹2 lakh, and don't pay ₹2 lakh or more in cash.
If you want to invest
- Gold ETFs trade on the stock exchange and need a demat account. There's no GST, and they're long term after only 12 months.
- Gold mutual funds invest in gold ETFs. You don't need a demat account and can start a SIP, but there's a second layer of fund costs, and long term takes 24 months.
- Gold bonds: no new ones have been issued since 2024. Existing bonds trade on the exchange; held to maturity, the gain is tax-free and they pay 2.5% interest a year (taxed at your slab rate).
- Digital gold isn't regulated by SEBI or the RBI, costs 3% GST to buy, and the platform sets the price you sell at.
Coins and bars
No making charges to speak of, but still 3% GST, and a jeweller may pay less than the market price when you sell. Buy hallmarked coins or bars, and keep the bill.
Keep the bill, whatever you buy
When you sell, your gain is the sale value minus what you paid. Without a bill, proving your cost is hard. See how gold is taxed when you sell or exchange it.
This page compares how each option works and is taxed. It isn't advice on what to buy. For your own situation, talk to a SEBI-registered investment adviser.
Common questions
Which is the cheapest way to buy gold in India?
Gold ETFs and gold mutual funds have no GST or making charges, only fund costs and, for ETFs, brokerage. Jewellery costs the most because of making charges and 3% GST.
How are gold ETFs taxed?
Held over 12 months: 12.5% on the gain, plus cess. Held less: your slab rate. No ₹1.25 lakh exemption.
How are gold mutual funds taxed?
Held over 24 months: 12.5% on the gain, plus cess. Held less: your slab rate.
How do I check if gold jewellery is genuine?
Look for the hallmark: the BIS logo, purity and a 6-digit HUID. Check the HUID in the BIS Care app.
Two ways to sort this
Do it yourself
- Decide: to wear, or to invest.
- Compare the costs in the table: GST, making charges, fund costs.
- For jewellery, verify the HUID in the BIS Care app.
- Keep the bill for when you sell.
Let an expert do it
We report gold you've sold or exchanged correctly in your return, whatever form it was in.
The first chat is freeWork it out for yourself
- Gold tax: Tax when you sell or exchange gold jewellery, coins or digital gold.
- SGB vs digital gold: Gold bonds or digital gold, after tax.
- Capital gains: Tax on shares, mutual funds, gold and property you sold.
- SIP: What a monthly investment could grow to.
See the tax when you sell gold you already have.
Open the gold tax calculatorSources
- Sovereign Gold Bond Scheme: FAQs, Reserve Bank of India
- Sale of gold jewellery without the 6-digit HUID not permitted after 31 March 2023, Press Information Bureau
- Hallmarking: FAQs for consumers, Bureau of Indian Standards
- Gold and silver funds: simplified taxation after Budget 2024 (fund house leaflet), HDFC Mutual Fund
- Tax rules for salaried individuals, AY 2026-27, Income Tax Department
This guide explains the rules in general. For your own situation, .