Gold/Silver Bees ETF TAX

@Quicko
Will gold and silver ETF be considered LTCG by holding for 1 or 2 years?

if sold before 23-Jul-2024, LT is 3yrs/20% with indexation
after budget, 2yrs/12.5% no indexation

Are you sure this apply to ETF also or to physical gold and silver?

in the past there was no diff b/w physical and etf in taxation and period specifically for capital gains.
otherwise physical had GST other stuff etc

What about taxation on international ETF like MON100? Previously they were taxed like debt instruments (as per slab), now after budget wiil they be eligible for LTCG @12.5% taxation?


I got this from this article

ETF were and are 12 mnts holding as LTCG FOR GOLD AND SILVER

That’s odd, as i wrote earlier it was same. Need to check from now sources.
Having different period for physical and etf is fundamentally incorrect but who who knows, maybe they’re discouraging physical investment.

it appears they have made these trading instruments like equity. even STCG is 20% on them but physical assets in stcg are slab rate. Will take time to understand these major changes.

Hi @hiren_parekh,

For all listed financial assets, holding period is made 12 months. As ETFs are listed, they’ll be considered long term if held for more than 12 months.

So ltcg on debt etfs will also be 12.5%?

Hey @Anshul_bishnoi,

Debt ETFs will be taxed at slab rate irrespective of holding period.

Here’s a detailed read that covers it all: What changes for investors after Budget 2024? – Z-Connect by Zerodha

Nithin’s post in LinkedIn says otherwise. What’s correct about traded debt etf?

All Debt MF and ETFs will be charged at slab rates irrespective of the holding period

[Capital gains tax]

(What changes for investors after Budget 2024? – Z-Connect by Zerodha)

According to the 2024 Finance Bill, GOLD ETFs purchased before April 1, 2023, and sold before April 1, 2025, will have their long-term capital gains (LTCG) taxed at 20% with indexation benefits, is not?

Hi @Noush,

No, LTCG will be taxed at 12.5% without indexation benefit.

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@Quicko
in the current financial year we book 1.25lac LTCG and no tax will be imposed or will it be from the next financial year?

Hi @hiren_parekh,

The ₹1.25L exemption on LTCG will be available for FY 24-25.