When you buy
- There's no income tax on buying gold, only 3% GST.
- Give your PAN for jewellery or bullion over ₹2 lakh in one purchase.
- A jeweller can't take ₹2 lakh or more in cash for a single sale. Pay by UPI, card or bank transfer.
When you sell: the rates
| You held it for | Taxed as | Rate |
|---|---|---|
| More than 24 months | Long-term capital gain | 12.5%, no indexation |
| 24 months or less | Short-term capital gain | Your slab rate |
Tax is on the gain, what you get minus what you paid, plus 4% cess. These rates apply to sales from 23 July 2024. The ₹1.25 lakh tax-free limit is only for shares and equity funds, not gold.
Example
Jewellery bought for ₹3 lakh in 2023 is sold for ₹4.5 lakh after three years. The gain is ₹1.5 lakh. Tax is 12.5% plus cess: ₹19,500. Sold within 24 months, in the 30% slab, it would be ₹46,800.
Exchanging old jewellery for new
An exchange is a sale of the old piece and a purchase of the new one. The gain on the old piece is taxable, worked out on the value the jeweller gives you for it.
Inherited and gifted gold
- Inherited: no tax when you receive it. When you sell, your cost is what the previous owner paid, and their holding period counts towards yours.
- Gifts: tax-free from relatives, and at your wedding. From others, gifts worth more than ₹50,000 in a year are taxed as your income.
Other forms of gold
- Digital gold: taxed like jewellery: 12.5% after 24 months.
- Gold bonds: tax-free if held to maturity. See our gold bonds vs digital gold calculator.
- Gold ETFs and gold funds have their own holding periods. Ask us before you sell.
Reporting it
A gain on gold means ITR-2, not ITR-1. Keep the purchase bill: without it, proving your cost is hard.
Common questions
How much tax do I pay on selling gold jewellery?
On the gain: 12.5% plus cess if you held it more than 24 months, or your slab rate if 24 months or less.
Is exchanging old gold jewellery taxable?
Yes. The old piece counts as sold at the exchange value, and the gain on it is taxable.
Is gold received as a gift taxable?
Not from relatives, or at your wedding. From others, gifts worth more than ₹50,000 in a year are taxed as income.
Do I need PAN to buy gold?
Yes, for jewellery or bullion over ₹2 lakh in one purchase. A jeweller can't accept ₹2 lakh or more in cash for one sale.
Two ways to sort this
Do it yourself
- Find the purchase bill for the gold you're selling or exchanging.
- Count the months you've held it (for inherited gold, from when the previous owner bought it).
- Work out the tax with our gold tax calculator.
- Report the gain in ITR-2 for the year you sold it.
Let an expert do it
We work out the gain on your gold, use any exemption you qualify for, and file ITR-2.
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.
- Capital gains exemption: Tax saved with a new house or bonds (54, 54F, 54EC).
Work out the tax on gold you're selling or exchanging.
Open the gold tax calculatorSources
- Tax rules for salaried individuals, AY 2026-27, Income Tax Department
- Tax on short-term capital gains, Income Tax Department
- Sovereign Gold Bond Scheme: FAQs, Reserve Bank of India
This guide explains the rules in general. For your own situation, .