Gold and Silver Taxation: How Holding Period and Investment Form Impact Your Tax Bill

• Taxation on gold and silver varies significantly based on the form of investment (physical, digital, ETFs, MFs, SGBs) and the holding period.
• Long-term capital gains (LTCG) for most gold and silver forms are taxed at 12.5% (without indexation benefit) if held for over 12 or 24 months, depending on the asset type.
• Short-term capital gains (STCG) are added to your total income and taxed at your applicable Income Tax Slab Rate, making early exits costly.
• Sovereign Gold Bonds (SGBs) offer the most tax-efficient option, with capital gains fully exempt if held until maturity, but this benefit is lost if sold prematurely on the exchange.
• GST is applied at the time of purchase for both gold and silver, increasing acquisition cost but not directly influencing capital gains calculations.

Why It Matters: Understanding gold and silver taxation based on investment form and holding period is crucial for investors.