ITR2 Online Entry for Sale of Physical Gold

For *sale of physical gold as Long Term Capital Gain LTCG* in *ITR for AY 2025-26 = FY 2024-25*, here’s where you fill it:

*Where to fill in ITR-2 or ITR-3*

Physical gold is a “capital asset”. LTCG = sold after 24 months holding.

*ITR-2 / ITR-3 > Schedule CG > Part B - Capital Gains*

1. *Schedule CG → Part B1: Long Term Capital Gains*

   - *Table B1*: `Sale/transfer of capital asset, other than listed shares/securities/unit etc.`

   - *Column “Nature of asset”*: Select `Immovable property` is wrong. For gold, select `Other asset` / `Jewellery/Gold` if dropdown has it. If not, choose `Other capital asset`.

   - *Descripttion*: Write `Sale of physical gold jewellery/bars`

   - *Date of purchase* + *Date of sale*: Enter exact dates

   - *Full value of consideration*: Sale amount you received

   - *Cost of acquisition*: Purchase price + making charges. Index it using CII.

   - *Cost of improvement*: If any, with indexed value

   - *Expenses on transfer*: Brokerage, etc.

2. *Indexation*: LTCG on gold gets indexation benefit u/s 48. Use CII table. CII for FY 2024-25 = 363. 

  3. Formula: `Indexed cost = Cost x 363 / CII of year of purchase`

4. *Rate*: LTCG on gold = 12.5% without indexation OR 20% with indexation u/s 112. For FY 2024-25, both options exist. Pick the one lower tax. Most people choose 20% with indexation for gold.

5. If buyer paid >₹2L cash or TDS u/s 194Q/206C applied, it’ll show in AIS. Match 

If sale value >₹2L in cash, buyer should deduct TCS u/s 206C(1H). If TDS/TCS appears in Form 26AS/AIS, claim it in Schedule TDS.

Check:

1. Whether 12.5% flat or 20% with indexation is better for you

2. Correct CII calculation 

3. Proof of holding period >24 months

Please check for any mistake 

Reporting the sale of physical gold: Report the sale of physical gold under Schedule CG (Capital Gains) in your ITR-2. Physical gold is considered a capital asset and gain is the difference between Sale Consideration minus Cost of Acquisition (and allowed expenses).
In online ITR-2: select "Sale of Assets Other Than Listed Securities" and furnish details like:
* Descripttion: Physical Gold / Gold Jewellery
* Purchase Date
* Sale Date
* Sale Consideration
* Cost of Acquisition
* Capital Gain/Loss

If it was held for more than 24 months, it is treated as LTCG or else as STCG.
Maintain purchase invoice, sale bill and bank transaction proof for any future query from IT dept. In case of error while entering details, if online utility still does not allow, one may use offline utility, fill details there, upload the json file and have successfully filed the return!
If you tell us if you had held it for more than 24 months or it was jewelery or coins or bar, members here can help guide you.