I found some details in zerodhaFundHouse website but it is still not clear to me. For investment horizon > 1 year there are two rules given. Which when applies when? Is the date 1st April 2025 meant for when you sell your silver holdings or when you have invested in silver?
The confusion is because the tax rule changes based on when you sell, not when you invest.
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If you sell before 1 April 2025, long term gains are taxed at your income tax slab.
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If you sell after 1 April 2025, long term gains are taxed at a flat 12.5%.
Tagging @Quicko in case they want to add or correct anything.
Thanks @nithin_kumrr . Also let’s say if I have a loss on some equity ( which is Long term loss ), can this loss negate the long term profit I make on silver? And does the same rule applies to the gold as well? Also Is first 1.25 lakh long term gains from silver and gold tax exempt or not?
Basically does long term gains from gold, silver, equity come under the same category or not? i.e. loss in one cancels the profit from another
@arpit_agarwal2
Long-term capital losses may be offset against any long-term capital gains, as such set-offs are considered on a head-wise basis rather than an asset-wise basis. Consequently, long-term capital losses arising from equity instruments may be offset against long-term capital gains from gold and silver, and vice versa. However, the exemption of Rs. 1,25,000 is applicable exclusively to long-term capital gains derived from equity shares.
@Quicko what about long term capital gains on bonds. Can the long term loss from bonds be set off against the long term profits in gold, silver and equity. And does this rule apply to STCG as well?
Hey @arpit_agarwal2
Yes, long-term capital gains (LTCG) on bonds can be set off against LTCG arising from gold, silver, and equity instruments. This principle also extends to short-term capital gains (STCG), as intra-head loss set-off is permissible regardless of the specific asset category.
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