Income tax on Selling gold

• November 16, 2020
• CA Chandan Agarwal's Office

Income Tax Act of India specifies that profit from sale of gold bars, jewelry, coins or utensils or any other form of precious metal will attract tax under capital gains. The profit on sale of your gold holding is taxable under the head “Capital Gains” of Income Tax. Only exception to this is in case of gold dealers who transact in gold as a part of their business, where profit on such transactions is taxable under the head “Income from business or profession”.

Source of gold investment

While buying gold, it is necessary that you take and retain your tax invoices for the purchase, be it jewellery or bullion. The Central Board of Direct Taxes (CBDT) has specified in its press release, dated 1 December, 2016 that there is no limit on holding gold jewellery provided that the source of investment or inheritance can be explained.