Income tax · Capital gains and property
How are gains on gold, crypto and unlisted shares taxed?
Short answer
Physical gold, jewellery and unlisted shares are long-term after 24 months; long-term gains are taxed at 12.5% without indexation, and short-term gains at your slab rate. Gold ETFs listed on an exchange are long-term after 12 months. Crypto and other virtual digital assets are taxed at a flat 30%, with no deduction other than cost and no set-off of losses. A 1% TDS applies on their transfer.
Gold
| Form | Long-term after | Long-term rate | Short-term |
|---|---|---|---|
| Jewellery, coins, bars | 24 months | 12.5%, no indexation | Slab rate |
| Gold ETF (listed) | 12 months | 12.5% | Slab rate |
| Gold mutual fund (fund of funds) | 24 months | 12.5% | Slab rate |
| Sovereign Gold Bond | 12 months if sold on the exchange | 12.5% | Slab rate; redemption by the RBI at maturity is exempt for individuals, subject to the conditions in force |
These rates apply to transfers on or after 23 July 2024. Keep purchase bills: without them, proving the cost of old jewellery is difficult. For gold inherited or received as a gift, see the note on inherited or gifted property, which applies to gold too.
Unlisted shares
- Long-term after 24 months; taxed at 12.5% without indexation. Short-term gains are taxed at the slab rate.
- The buyer may be taxed if the price is below the fair market value worked out under the rules.
- Shares of a company in a foreign country held by a resident are reported in Schedule FA.
Crypto and other virtual digital assets (VDA)
- Flat 30% (plus surcharge and cess) on the gain, whatever the holding period.
- No deduction other than the cost of acquisition: no exchange fees, no interest.
- A loss on one VDA cannot be set off against a gain on another, or against any other income, and cannot be carried forward.
- Gifts of VDA are taxed in the recipient's hands, as with other property.
- TDS of 1% is deducted on transfer, by the exchange or the buyer, above ₹50,000 a year (₹10,000 for most others). Claim it in your return.
- Report each transaction in Schedule VDA of the return.
Income from mining or staking may be business income or other income; the 30% rate still applies to the gain on sale.
Legal basis
- Sections 112 and 2(42A), Income-tax Act, 1961, now sections 197 and 2(101), Income-tax Act, 2025
- Section 115BBH (virtual digital assets), now section 194
- Section 194S (TDS on VDA), now section 393(1)
Official sources
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