
Awarded Trusted Buyer Of Gold
December 23,2024
24 Karat Gold
Gold has a special place in India in many ways, as a symbol of prosperity or as an investment asset. In 2025, new taxation policies and rules on gold transactions will be introduced, impacting every seller and buyer alike. Knowing these developments is crucial to maximizing returns and making data-driven decisions.
From income tax rules to GST regulations and implications, we have covered everything in this blog that you should know about gold and related taxes in India. Explore these rules, tips, strategies, and regulations for making smart decisions and saving tax on gold transactions this year.
Gold is more than a metal in India. It displays financial security, tradition and wealth. Almost every family passes down gold jewellery through new generations. Further, there is a surge in gold transactions on the occasion of many festivals.
Recently, many regulatory developments have reshaped how gold is sold, bought, and taxed. These changes include revised GST rates, updated capital gain tax rules, and specific exemptions on a few transactions. Such developments aim to ensure compliance with the financial policies of the Indian government and bring transparency to gold transactions.
Also Read:-Physical Gold vs. ETFs vs. Mutual Funds: Which Is the Better Investment?
Whether you are an experienced investor or want to purchase gold for the first time, knowing these rules is crucial, and it will help you to comply with Indian tax rules and optimize gold investments.
The government of India will introduce major updates to gold regulations in 2025 to ensure better compliance and transparency. These developments affect gold transactions in many ways, including GST rates, taxation and other rules. Below are the details of these major changes:
For gold investments, the Indian government has made notable changes in capital gain tax rules this year. STCG from gold investments of less than 3 years belong to the tax slab of an individual's annual income.
At the same time, LTCG has a 20% tax rate alongside indexation advantages. Further, to ensure compliance with anti-money laundering regulations, transactions above 10 Lakh need government documents, like a PAN card.
Also Read:-Why Indians Buy Gold on Dhanteras: A Tradition Ahead of Diwali 2024
GST on gold coins, jewellery, and bars remains at 3%, with an additional GST of 5% on making charges. However, the government has reduced import duties on gold this year to curb smuggling and encourage formal trade. This development can potentially make gold more affordable for transactions in the growing gold market.
Selling existing gold items comes with certain tax implications. If you have inherited gold that you want to sell, the government will levy a capital gain tax depending on its current market value.
At the same time, you will pay tax on the profit earned when you sell self-purchased gold items. In the 2025 fiscal year, there are some tax exemptions on whether it belongs to government schemes or if it is sold within a certain timeframe, helping gold holders reduce tax liability while selling it.
Also Read:-Golden Rush: Top Benefits of Buying Gold During Indian Festivals
Indian gold taxation includes both GST and income tax, with distinct implications and rules. Whether you are selling the gold, buying it as jewellery or making an investment, you should know these taxes. Here are the updated gold taxation policies in India 2025.
You are liable to pay short-term and long-term capital gain tax on the profit generated on gold while selling it, based on holding duration.
The short-term capital gain tax is applicable if you sell gold before 3 years of purchase, depending on your income tax slab. Besides, there is a 20% long-term capital gain tax if you sell gold after holding it for more than 3 years.
As a gold investor, you can explore a few options, like reinvesting profits generated through gold in real estate or government bonds for a specific duration to save tax. Refer to sections 54EC & 54F of the Indian Income Tax Act that offer opportunities to reduce your tax liability.
Goods and Service Tax applies when you purchase the gold item, at 3% of the price and 5% on jewellery-making charges. Besides, income tax is applicable when you sell the gold to somebody else.
The income tax impacts the profits you generate at the time of selling the gold, and GST directly impacts the buying price.
GST considerably impacts the buying price of gold items, making it crucial to legally reduce these expenses in a specific way. Though it is not possible to avoid paying GST on gold directly, there are a few strategic alternatives, like other investment options, that help to reduce tax liability.
The easiest way to reduce GST liability is to buy gold during special occasions when the Indian government waives taxes, and that too within specific limits. Alternatively, purchasing second-hand gold does not require you to pay GST, given that the original buyer has paid taxes while buying it.
One more way to reduce GST is to purchase gold jewellery during festival seasons, where a few jewellers attract customers by discounting GST.
The highly efficient way to avoid paying GST on gold is to buy Sovereign Gold Bonds. The government issues bonds and offers dual benefits of interest income and capital appreciation with no GST on the purchase.
The second GST-free alternative is purchasing gold ETFs. These exchange-traded funds allow you to indirectly invest in gold through demat accounts, offering high security and liquidity without storage risk.
Latest tax implications and rules on gold in 2025 is required to make smart financial decisions. Whether you are selling or purchasing gold, complying with government regulations and reducing costs can increase your ROI. Are you searching for a high paying gold jewellery buyer in Delhi? Contact us at 24Karat for best places to sell gold in Noida.
There are two types of income taxes applicable on gold, subjected to capital gain. These are long-term and short-term, depending on how much time you hold the gold.
Also Read :- Decode the Journey of Gold From Ore to 24Karat!
Yes, purchasing second-hand gold or sovereign gold bonds are GST-free gold buying options in 2025.
The GST tax slab for gold jewellery is 3%, with an additional 5% GST on making charges.
Yes, you don't need to pay GST on inherited gold, but capital gain taxes are levied once you sell it.
Also Read :- Navigating Gold Tax Laws in India: What You Need to Know