Tax Consultant
1594 Points
Posted on 07 July 2026
You are correct about the law change. Finance Act 2024 reclassified STCG on gold ETFs and silver ETFs as ordinary capital gains taxable at YOUR SLAB RATE, not the 20% flat rate under Section 111A. This applies from AY 2026-27 (FY 2025-26).
In ITR-2, report the STCG from gold/silver ETFs in Schedule CG under the section for Short Term Capital Gains at slab rates (not under Section 111A). The ITR-2 utility has a separate row for STCG on assets other than equity shares/equity MFs.
If Computax is auto-routing it to 111A (20%), check:
1. The asset type coded in the software for gold/silver ETF , it may still be set to equity-oriented fund
2. Whether your software version includes the Finance Act 2024 update , check with the vendor
3. As a workaround, some practitioners manually adjust the Schedule CG entry and verify the tax computation reflects slab-rate treatment
For gold ETF STCG declared at slab rates in ITR-2, your tax is computed at your marginal rate (5%, 10%, 15%, 20%, or 30%) on the net gain after the basic exemption, not a flat 20%.
For the full picture on ITR-2 filing and how capital gains schedules are structured this year, Tax Garden's [ITR filing service](https://taxgarden.in/itr-filing) handles complex gain/loss scenarios end-to-end.