Gold prices have increased by about 48.9% in the last one year, and today 10 grams of gold is being sold for around ₹ 1,14,040. Gold is not just jewellery, but also an important investment. But do you know how gold is taxed? Income tax is not levied while buying gold, but 3% GST has to be paid on the purchase price and 5% on making charge. Real understanding of tax is important while selling. According to the Finance Act 2024, if you keep gold for 24 months, Short-Term Capital Gains (STCG) tax will be levied as per your income slab. Holding more than 24 months will attract a flat tax of 12.5%, without indexation benefit. Gold ETFs and Mutual Funds will attract STCG tax on holding for 12 months and 12.5% ​​flat tax on holding more than 12 months. Sovereign Gold Bonds (SGBs) are different — with a tenure of 8 years offering 2.5% annual interest and tax free returns on maturity. But if you sell quickly, the tax rules will be different.