If you have invested in Gold ETFs, Silver ETFs, or Gold Mutual Funds (FoFs), you may be eligible to pay ZERO tax on Long-Term Capital Gains up to ₹1.25 lakh every financial year, subject to conditions.
Proper planning before 31 March can help you lock in gains and reduce future tax liability.
📊 Correct Taxation of Gold & Silver Funds
Gold & Silver ETFs
• Held more than 12 months → LTCG taxed @ 12.5%
• Held up to 12 months → STCG taxed at slab rate
Gold Mutual Funds (FoFs)
• Held more than 24 months → LTCG taxed @ 12.5%
• Held up to 24 months → STCG taxed at slab rate
✅ When You Can Claim ₹1.25 Lakh LTCG Exemption
You can claim this exemption only if:
✔ You sell the investment and realise Long-Term Capital Gain
✔ The gain is Long-Term
(ETF > 12 months / Gold Fund > 24 months)
✔ Total LTCG during the financial year is up to ₹1.25 lakh → Tax = NIL
✔ If LTCG exceeds ₹1.25 lakh → Tax applies only on the excess
✔ This limit is available every financial year
💡 Smart Tax Planning Strategy (Tax Harvesting)
You can:
• Book gains up to ₹1.25 lakh → Pay ZERO tax
• Reinvest immediately
• Increase your cost base
• Reduce future tax burden
• Continue your investment without interruption
🎯 Who Should Review Immediately
This is highly relevant for taxpayers who:
• Have profit in Gold or Silver ETFs
• Have profit in Gold Mutual Funds
• Are long-term investors
• Want to optimise tax before financial year end
⚠ Professional Execution is Important
Correct planning ensures:
✔ Maximum tax exemption
✔ Compliance with tax law
✔ Improved post-tax returns
📞 Get Your Tax Saving Review Done
Avoid unnecessary tax outflow. Use available exemptions efficiently.
CA Ramakrishna Sanjay
Contact: +91 77602 52581
Plan before 31 March. Save tax legally. Grow wealth smarter.
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