LTCG on Gold ETF, SIlver ETF, Equities ETF and bonds

Taxation
1

Let’s say I have long term capital gains ( holding > 1 year ) on gold etf, silver etf and equities ETF. The total LTCG on these three asset classes < 1.25 Lakhs. Do I still have to pay LTCG tax. The LTCG tax rate on all these three asses is same i.e. 12.5%

Also LTCG on bonds is 10% ( without indexation ). Can the LTCG from bonds be clubbed with LTCG of above three assets to claim 1.25 lakh tax free buffer

@Quicko

2

No it’s not. It’s slab rate for interest income and Capital gains (LTCG[12.5% for listed/Slab for unlisted under 50AA]/STCG[Slab]) for capital income.

< 1.25 Lakhs

Exemption is only available for equities under section 112A.

3

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This is what I got from quicko

EDIT : I think you are right. I found this by clicking on “Section 112” link

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But I am still not sure about clubbing of LTCG from above 4 asset classes so that basic exemption limit can be applied on them

4

Most info is outdated. Taxation of Bonds in India is correct I believe. My previous post is also edited to clarify.

Clubbing only 2 sections for LTCG:

  • 112
  • 112A

112A is for equity shares in domestic company. 112 is for the rest. Only 112A provides 1.25L exemption… so no gold etc…AFAIK…

@Quicko might be able to provide exact sections for this type of clubbing and reasoning behind it(They are absent for a week now. Maybe they’ll come after new year)

Zerodha also seem to say the same:

Note the tax implication section

5

looks like right to me. Thanks for the help. It’s sad that silver and gold doesn’t come into 112A. I was planning to realize some profit without paying tax, the NIFTY hasn’t given me any profit in last 1 year so I don’t have much capital gains there. Honestly, this government is changing taxation rules every year, it gets difficult to keep up with it. Just look at the screenshot below for gold taxation. It’s very complicated

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6

Gold taxation is better with SGBs, when it’s trading at discount to fair value(https://sgb.vercel.app/), because

  • no expense ratio
  • no real tracking error

There still is tracking error due to liquidity. So one should preferably buy when it’s trading at discount or less premium to fair value…