You have to pay capital gains tax when selling gold holdings

YOUR QUERIES: INCOME TAX

- 

What is the capital gains tax that I need to pay if I sell some family gold holdings? -Viraj Sharma

When you sell physical gold, be it jewellery, coins, or biscuits, the profit you earn is taxed as capital gains. The rate of taxation depends on the holding period of such gold. If you have held the gold for more than 24 months, your profit is classified as a long-term capital gain and taxed at 12.5%. If you sell before that, it is considered a short-term capital gain, added to your income and taxed at your applicable income tax slab rate. In case of gold inherited under a Will or otherwise, the holding period of the previous owner is also taken into account to determine whether it is a short-term or long-term gain.