STCG & LTCG on ETF and SGB purchased from the market

Hi,

How STCG & LTCG is calculated on ETF and SGB purchased from the market?

@Quicko Can you confirm?

ETF is regular treatment. But SGB will let @Quicko to confirm.

SGB if held till maturity is tax free.
Though not explicitly mentioned anywhere, this should apply to SGB bought from market too.

Hi @Shiv_Katira,

Assuming you are talking about Gold ETFs, if these are held for more than 12 months, gains will be long-term and taxed at 12.5% and if held for less than 12 months, gains will be short-term and taxed as per the applicable slab rate.

For SGBs, if you buy them from the secondary market and hold them till maturity, the capital gains will be exempt from taxes. However, if you sell them in the secondary market, LTCG will be taxed at 12.5% and STCG will be taxed as per slab rate.

I request you check once again
From what I read if sgbs are sold with 3years they are taxed at slab rate and if sold after holding it for more than 3 years they are taxed at 20% with the benefit of indexation

I may be wrong please confirm with a tax professional.