Yes, you are correct @nayakd1. After bonus shares are issued, the cost of the original shares is adjusted. If the adjusted price (₹1,978) is higher than the current market price (₹982), selling now will result in a capital loss.
Are gold ETFs taxed similar to debt funds? Is it a better option compared to physical gold and SGBs?
Thanks a lot for prompt reply.
Gold ETFs are taxed like equity funds if held over 1 year (long-term capital gains) and like debt funds if held less than 1 year, depending on the type. Compared to physical gold and Sovereign Gold Bonds (SGBs), ETFs offer liquidity and lower storage hassle, but SGBs provide fixed interest and better tax benefits.
Long-term gains from gold ETFs (held > 1 year) are taxed like equity flat 10% above ₹1 lakh. Short-term gains are taxed as debt fund income. ETFs offer better liquidity and less hassle than physical gold; sovereign gold bonds offer interest and tax perks.