NRIs: Gold ETF Gains Tax Rules in India Explained

• Gold ETFs are considered 'securities' and capital assets under the Income Tax Act, 1961, with profits taxed as capital gains.
• Long-term capital gains (LTCG) apply if units are held over 12 months (effective April 1, 2025), taxed at 12.5% without indexation benefits, plus surcharge and cess.
• Short-term capital gains (STCG) apply if units are sold within 12 months, taxed at the investor's income tax slab rates.
• The Rs 1.25 lakh LTCG exemption does not apply to Gold ETFs for NRIs, as they are not equity-oriented instruments.
• NRIs should consider Double Taxation Avoidance Agreements (DTAA) and consult tax professionals for compliance and optimization.

Why It Matters: NRIs face specific tax rules on Gold ETF gains in India, including LTCG at 12.5% and no Rs 1.25 lakh exemption.