Ch.8 · Dividend and STT Taxation · hard
How are gold fund (Gold FoF) gains taxed?
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EXPLANATION
Gold funds (FoF investing in Gold ETFs) are treated as 'other than equity-oriented' funds for tax purposes. Post April 2023 changes, all gains from gold funds are taxed at the investor's applicable slab rate regardless of holding period — there is no LTCG benefit with indexation. This makes gold ETFs (held directly in demat) potentially more tax-efficient than gold funds from a capital gains perspective.
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