Tax on Selling Gold in India 2026-27: LTCG, STCG & Inheritance

Tax on Selling Gold in India (FY 2026-27): LTCG, STCG and Inherited Gold Explained

Instant Gold Value Valuation Team Updated 26 Sep 2026 2 min read

Profit from selling physical gold in India is a capital gain. Gold held for more than 24 months is long-term and taxed at 12.5% without indexation; gold held for 24 months or less is short-term and taxed at your income-tax slab rate. For inherited gold, the previous owner's holding period and cost are counted.

In this guide (6 sections)

This guide is general information, not tax advice. Rates reflect the rules applicable to sales on or after 23 July 2024, which continue for FY 2026-27. Please confirm your situation with a chartered accountant.

Short-term vs long-term

Holding period	Type of gain	Tax rate
24 months or less	Short-term capital gain (STCG)	Added to income, taxed at your slab rate
More than 24 months	Long-term capital gain (LTCG)	12.5% without indexation (plus surcharge and cess)

How to calculate the gain

Capital gain = Sale price − Purchase cost − Transfer expenses

Example: You bought 50 g of jewellery in 2019 for ₹1,75,000 and sell its gold content today for ₹6,20,000. The gain is ₹4,45,000. Held for more than 24 months, it is long-term: 12.5% × ₹4,45,000 = ₹55,625 plus cess.

Inherited gold

Receiving gold through inheritance or a will is not taxed.
When you sell, the previous owner's purchase date and cost are used, so inherited gold is almost always long-term.
For gold acquired before 1 April 2001, you may take its fair market value on 1 April 2001 as the cost, which usually reduces the gain significantly.

No bill? How cost is established

Without a bill, many taxpayers use a registered valuer's report or historical gold rates for the year of purchase. Keep the purchase invoice we give you when you sell — it records the date, weight, purity and sale price.

Ways to reduce or save tax

Reinvest in a residential house — the law allows an exemption on long-term gains from assets other than a house when the net sale proceeds are invested in a residential house, subject to conditions.
Set off losses — capital losses can be set off against gains as per the rules.
Time your sale — crossing the 24-month mark moves you from slab rate to 12.5%.

Does the buyer deduct tax?

For ordinary household sales, you report the gain yourself in your income-tax return under Capital Gains. Ask your buyer for a proper purchase invoice — we provide one with every sale.

FAQs

Is exchanging old gold for new jewellery taxable?

An exchange is treated as a sale of the old gold, so capital gains rules can apply on the old gold portion.

Is selling gold received as a wedding gift taxable?

Gifts received on marriage are not taxed when received. On sale, capital gains apply using the original cost to the previous owner where applicable.

Instant Gold Value Valuation TeamGold valuation & purity testing specialists

Our valuation team visits homes across Mumbai, Thane and Navi Mumbai every week, testing gold with professional gold-testing equipment and calibrated scales. Every guide on this site is written from that field experience and reviewed before publishing.