Gold prices rise 7.60% this month, 15% in YTD. How income tax rule applies on your gains?

livemint.com:

Income tax rule for gold: Amid fear of the Iran-Israel war, the gold rate today is in an uptrend bias. Despite the weak opening of the gold price today on the Multi Commodity Exchange (MCX), gold price in the domestic market has risen to the tune of 7.60 percent in April 2024 whereas it has delivered more than 15 percent return to the gold investors in YTD time. So, at this juncture, when the market experts are still expecting a bounce back in gold prices, it is important to know how the income tax rule applies to income booked from gold investments.

Speaking on the gold price rally in recent time intervals, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, «In YTD time, gold rate today is higher by ₹9,500 per 10 gm from its 2023 close price of nearly ₹63,200 per 10 gm. This means gold prices have appreciated to the tune of 15 percent in YTD time. Likewise, in April 2024, gold prices have appreciated to the tune of 7.60 percent. However, in one year, the gold prices have surged by around ₹13,000 per 10 gm, which is around 22 percent higher from its price of around ₹59,500 per 10 gm a year ago.»

Speaking on the income tax rules applicable to one's return from gold investments, Mumbai-based tax and investment expert Balwant Jain said, «If the investment is in physical gold, then there will be a different set of income tax rules applicable on one's income from gold. To calculate one's income from gold, one needs to look at the period of investment. If someone books profit in gold after holding it for less than three years, then the income tax will be calculated under the short-term capital gain rules whereas, for three years or above, the income tax will be calculated under the long-term capital gain rules.»