{"id":8707,"date":"2010-02-24T04:12:54","date_gmt":"2010-02-24T04:12:54","guid":{"rendered":"https:\/\/www.amitbhawani.com\/blog\/?p=8707"},"modified":"2010-02-24T04:12:54","modified_gmt":"2010-02-24T04:12:54","slug":"taxation-of-gold-etf","status":"publish","type":"post","link":"https:\/\/www.amitbhawani.com\/blog\/taxation-of-gold-etf\/","title":{"rendered":"Taxation of Gold ETF\u2019s"},"content":{"rendered":"<p>Gold ETF\u2019s are treated as non-equity mutual funds. The taxation of returns depends on the holding period of the gold ETF units. If the gold ETF units are held for less than 12 months then the gains are taxed as short term capital gains. So in this case the returns are clubbed in the overall income of the person and depending on which tax slab he falls in; he will be taxed accordingly.<\/p>\n<p>If the holding period of the gold ETF units is more than 12 months; then the profit made by selling the gold is classified as long term capital gain. Here the customer has to pay either 10% on the gain (profit) without indexation. Or the tax on the profit is 20% with indexation which ever is lower.<\/p>\n<figure id=\"attachment_8708\" aria-describedby=\"caption-attachment-8708\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-Etf-Tax.jpg\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-Etf-Tax-300x198.jpg?resize=300%2C198\" alt=\"Gold Etf Tax\" title=\"Gold Etf Tax\" width=\"300\" height=\"198\" class=\"size-medium wp-image-8708\" srcset=\"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-Etf-Tax.jpg?resize=300%2C198&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-Etf-Tax.jpg?resize=150%2C99&amp;ssl=1 150w, https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-Etf-Tax.jpg?w=400&amp;ssl=1 400w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-8708\" class=\"wp-caption-text\">Gold Etf Tax<\/figcaption><\/figure>\n<p>In case of physical gold (coins and biscuits) they are required to be held for 3 years or more to be classified as long term capital gains. If sold before 36 months then short term capital gains tax will have to be paid. So investing in gold through gold ETF\u2019s has tax advantages over investing in physical gold.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold ETF\u2019s are treated as non-equity mutual funds. The taxation of returns depends on the holding period of the gold ETF units. If the gold ETF units are held for less than 12 months then the gains are taxed as short term capital gains. So in this case the returns are clubbed in the overall [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1310],"tags":[],"class_list":{"0":"post-8707","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-guides","8":"entry"},"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/12\/Gold-Etf-Tax-300x198.jpg?fit=300%2C198&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":8705,"url":"https:\/\/www.amitbhawani.com\/blog\/physical-gold-buying-vs-gold-etf\/","url_meta":{"origin":8707,"position":0},"title":"Physical Gold Buying V\/s Gold ETF","author":"Amit Bhawani","date":"February 24, 2010","format":false,"excerpt":"Since years people have been buying gold the traditional way in the form of jewellery or gold biscuits and coins. Then the natural question that will come to ones mind will be why should I buy gold through gold ETF units in demat (electronic) format. Taking the delivery of gold\u2026","rel":"","context":"In &quot;Ultimate Guides&quot;","block_context":{"text":"Ultimate Guides","link":"https:\/\/www.amitbhawani.com\/blog\/category\/guides\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8699,"url":"https:\/\/www.amitbhawani.com\/blog\/gold-exchange-traded-funds-etf\/","url_meta":{"origin":8707,"position":1},"title":"Gold Exchange Traded Funds (ETF)","author":"Amit Bhawani","date":"February 24, 2010","format":false,"excerpt":"Gold ETF units are just like units of a mutual fund. They are listed on the stock exchange and traded just like equity shares. Units of Gold ETF can be bought and sold just like how units of equity shares can be bought and sold through a stock exchange. Just\u2026","rel":"","context":"In &quot;Ultimate Guides&quot;","block_context":{"text":"Ultimate Guides","link":"https:\/\/www.amitbhawani.com\/blog\/category\/guides\/"},"img":{"alt_text":"Gold ETF","src":"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-ETF-150x150.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8697,"url":"https:\/\/www.amitbhawani.com\/blog\/investing-in-gold-the-etf-way\/","url_meta":{"origin":8707,"position":2},"title":"Investing in Gold the ETF Way","author":"Amit Bhawani","date":"February 24, 2010","format":false,"excerpt":"Introduction Arjun is a worried father these days. His daughter\u2019s wedding is planned in the next 6 months. Over the last 2 years or so gold prices have soared from near about Rs 10,000 per 10 grams levels to Rs 17000+ levels. This frenetic rise in the prices of gold\u2026","rel":"","context":"In &quot;Ultimate Guides&quot;","block_context":{"text":"Ultimate Guides","link":"https:\/\/www.amitbhawani.com\/blog\/category\/guides\/"},"img":{"alt_text":"Gold Investment ETF","src":"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/02\/Gold-Investment-ETF-150x150.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8703,"url":"https:\/\/www.amitbhawani.com\/blog\/demat-trading-of-gold-etf-units\/","url_meta":{"origin":8707,"position":3},"title":"Demat Trading of Gold ETF Units","author":"Amit Bhawani","date":"February 24, 2010","format":false,"excerpt":"Since gold ETF\u2019s are bought and sold through a stock exchange; dealing in gold ETF\u2019s requires a demat account. If a person already has a demat account for equity share trading then he can use the same demat account for buying of gold ETF units. A person who does not\u2026","rel":"","context":"In &quot;Ultimate Guides&quot;","block_context":{"text":"Ultimate Guides","link":"https:\/\/www.amitbhawani.com\/blog\/category\/guides\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1643,"url":"https:\/\/www.amitbhawani.com\/blog\/share-markets-crash-economy-tips\/","url_meta":{"origin":8707,"position":4},"title":"Share Markets Hit Economy Down whats next?","author":"Amit Bhawani","date":"October 14, 2008","format":false,"excerpt":"Indian Economy is going down, the stock markets crashing heavily, IT down with top companies cutting jobs making settled people run for new scopes and opportunities. I was just checking the google news section for jobs and found multiple news with these titles - MetLife to cut jobs shares plunge,\u2026","rel":"","context":"In &quot;Business&quot;","block_context":{"text":"Business","link":"https:\/\/www.amitbhawani.com\/blog\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/12\/Stocks-Market-Crash.jpg?fit=397%2C350&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5260,"url":"https:\/\/www.amitbhawani.com\/blog\/how-to-save-income-tax-in-india\/","url_meta":{"origin":8707,"position":5},"title":"How to Save Income Tax in India","author":"Amit Bhawani","date":"August 12, 2009","format":false,"excerpt":"How to save income tax in India is a question asked by all tax payers. It means reducing the income tax amount a person pays while filing his tax returns. Income tax act section 139 states that it is mandatory for all individuals who earn above the prescribed maximum to\u2026","rel":"","context":"In &quot;Corporate Talk&quot;","block_context":{"text":"Corporate Talk","link":"https:\/\/www.amitbhawani.com\/blog\/category\/corporate-talk\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.amitbhawani.com\/blog\/wp-content\/uploads\/2010\/12\/Tax-Deductions-Exemptions.jpg?fit=400%2C286&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/posts\/8707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/comments?post=8707"}],"version-history":[{"count":0,"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/posts\/8707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/media\/19638"}],"wp:attachment":[{"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/media?parent=8707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/categories?post=8707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amitbhawani.com\/blog\/wp-json\/wp\/v2\/tags?post=8707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}