DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME

This query is : Resolved

Quick Summary

ETF trading may be taxed as capital gains, not business. Equity ETFs attract STCG tax, while non equity ETFs are taxed at slab rates. With total income below threshold, tax may be nil with rebate. AIS figures may update later.

sundeep

sundeep (Querist)
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14 April 2026 FOR 51 LAKHS SALES TURNOVER FOR ETF TRADING, AS MENTIONED IN SUBJECT, TAKEN UNDER SEC44AD AT 6% PROFIT (TO SKIP BOOK KEEPING AND AUDIT ETC.) TRADING PROFIT AT 6% IS AROUND 3.06 LAKHS. SO INCLUDING THIS TOTAL INCOME STANDS AT RS.7 TO 8 LAKHS. AM I GOOD FOR ZERO TAX AS INCOME IS BELOW 12 LAKHS?
IN AIS STATEMENT RS.18+ LAKHS IS GIVEN AS SALES (IN PLACE OF 51L). CAN I USE THIS FIGURE FROM AIS? IS SEC 87 A REBATE APPLICABLE TO ME?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 April 2026 Now a days department raises query for not declaring the STCG in traded ETFs as the brokerage house report the income under STCG.

sundeep

sundeep (Querist)
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14 April 2026 IT HAS GIVEN CHOICE SO I TAKE IT. BROKERAGES DO NOT HAVE CHOICE TO SHOW THIS AS BUSINESS INCOME. I HAVE MODIFIED QUERY ABOVE PLEASE SEE. I HAD ALREADY DECIDED AND SO NOT PAID ANY ADVANCE TAX.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 April 2026 AIS will show it as 51 lakhs after the Q4 data is updated. Go into the details of report, it would be under Capital gains.

sundeep

sundeep (Querist)
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14 April 2026 YES IT IS UNDER STCG. I MADE 1,32 L PROFIT FROM STCG STT PAID AND STT UNPAID(THOUGH IT WAS DONE FROM SAME DEMAT ACCOUNT ON NSE). GIVE SOLUTION. I AM A VERY FREQUENT TRADER. ACTUALLY BY OPTING FOR SEC 44 AD I AM SHOWING TRADING INCOME OF 3 LAKHS INSTEAD OF 1.32 LACS JUST TO SKIP BOOK KEEPING. SO WHAT IS THE SOLUTION NOW

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 April 2026 Even by declaring the income of 1.32 L under STCG of Gold & Silver ETF and being total income below 12 L, your income tax liability will be NIL. So, chill.....

sundeep

sundeep (Querist)
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15 April 2026 SIR, IS IT CONFIRMED WHAT YOU SAY?. ALSO, I HAVE TRADED IN OTHER ETFs ALSO APART FROM GOLD AND SILVER. MY BROKER, ICICIDIRECT, HAS SEGREGATED ALL ETFs IN STT PAID AND STT UNPAID CATEGORIES. A SEPARATE CATEGORY FOR GOLD AND SILVER IS NOT MADE, SO I SORT OUT AND REPORT ACCORDINGLY. WHETHER COPPER AND ZINC ALSO FALL IN THIS CATEGORY? WHAT SHOULD I REPORT FOR OTHER ETFs?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 April 2026 Tax will be applicable only over STCG arrived over equity based ETF transactions, not over any other.

sundeep

sundeep (Querist)
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15 April 2026 SIR, WHAT ABOUT COPPER, ZINC, AND METAL INDEX ETF? WHY GOLD AND SILVER ETFs ARE SEGREGATED IN TO STT PAID AND STT UNPAID. DO I CONSIDER BOTH AS ONE FOR CLCULATIONS?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 April 2026 Yes, all other than equity ETF are considered under one category.

sundeep

sundeep (Querist)
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15 April 2026 SO THE NON-EQUITY ETFs WILL GO IN BUSINESS INCOME AT SLAB RATES AND EQUITY-BASED ETFS WILL GO UNDER STCG WITH 20% STCG TAX. PLEASE CONFIRM.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 April 2026 Non equity ETF will be taxed as per slab rate; not essentially business income.

sundeep

sundeep (Querist)
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16 April 2026 Where to report non-equity and equity-based ETFs in ITR3.?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 April 2026 Let the ITR 3 be released....
Both are reported in Schedule CG, but in different columns....

sundeep

sundeep (Querist)
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16 April 2026 SIR THANKS VERY MUCH. MOST OF IT IS NOW CLEAR.