Hello @Soniya,
The gains from selling gold and silver ETFs are taxed under capital gains, not income from other sources.
Gold ETFs held for more than 12 months qualify as LTCG, while silver ETFs held for just one month will be treated as STCG. For non-equity ETFs like gold and silver, the 12-month holding period is the threshold to determine long-term vs short-term.
The ₹1.25 lakh LTCG exemption is not available here, as it applies only to equity shares and equity-oriented mutual funds.
So, the LTCG on gold/silver ETFs is taxed at 12.5% without indexation.
STCG is taxed at normal slab rates.
There is no indexation benefit for these assets.
And yes, you can set off equity capital losses against these gains, provided the set-off is within the same category - STCG against STCG and LTCG against LTCG.
We also have a detailed thread on gold & silver taxes:
- Physical gold, gold ETFs and mutual funds: How are various gold investments taxed?
- How silver is taxed in India?
Hope this helps!