Selling old gold

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When selling old gold held for over 10 years, proper documentation like bills or valuations is crucial for tax purposes, especially for inherited items. The holding period generally counts from the original acquisition, and sales after two years trigger Long-Term Capital Gains (LTCG) tax. LTCG on gold is taxed at a flat 12.5% on gains, without indexation. For gold purchased before April 1, 2001, its Fair Market Value on that date is used as the acquisition cost.

Krishna Murthi

Krishna Murthi (Querist)

01 October 2025 What are the tax and financial implications when selling old gold held more than 10 years?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

01 October 2025 Proper documentation (bills or valuation by a registered valuer) is necessary, especially for gold inherited or purchased decades ago, for claiming acquisition cost and smooth tax filing.
If inherited, holding period is generally counted from initial acquisition (by the person from whom inherited); sale after two years of original purchase triggers LTCG.
Gold held for more than two years (after July 2024) is considered long-term.
LTCG from gold sale is taxed at a flat rate of 12.5% on the gains, without indexation benefit.
If purchased before April 1, 2001, the fair market value (FMV) as of this date is considered the cost of acquisition.
The sale proceeds, purchase/acquisition history, and calculation details of the gains should be clearly provided; for inherited gold, the original cost or the April 1, 2001 fair market value may be applied.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

03 October 2025 Good Luck.....

Krishna Murthi

Krishna Murthi (Querist)

04 October 2025 Thanks Dhirajbhai.. very precise and helpful…

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