Learn how the flat 12.5% Long-Term Capital Gains (LTCG) rate applies to family gold and urban property, the specific conditions for offsetting real estate losses against equity gains, and why the location of your inherited agricultural land determines whether you owe any tax at all.
Navigating India’s Revised Capital Gains Tax Rules for 2026
What is the capital gains tax that I need to pay if I sell some family gold holdings?—Viraj Sharma
When you sell physical gold, be it jewellery, coins, or biscuits, the profit you earn is taxed as capital gains. The rate of taxation depends on the holding period of such gold. If you have held the gold for more than 24 months, your profit is classified as a long-term capital gain and taxed at 12.5%. If you sell before that, it is considered a short-term capital gain, added to your income and taxed at your applicable income tax slab rate. In case of gold inherited under a Will or otherwise, the holding period of the previous owner is also taken into account to determine whether it is a short-term or long-term gain.
I had purchased a property five years ago. I am planning to sell it. The cost of acquisition is higher than the price that I will get after selling. Can I offset the loss from my gains in equity?—Amogh Singh
Since the property is held for more than 24 months, the loss on sale of the property will be long term capital loss. Long term capital losses can be set off against other long term capital gains including the ones from sale of equity. However, such losses cannot be used for set off against short term capital gains or income under any other head. Any unadjusted loss can be carried forward for eight assessment years for future set-off, provided it is appropriately disclosed in your income tax return.
I am a salaried employee. I have inherited some agricultural land which I want to sell. How do I compute the capital gains tax?—Vipul Kumar
The taxability of capital gains on sale of inherited agricultural land depends on whether the land is classified as rural or urban agricultural land. Rural agricultural land is excluded from the definition of a capital asset under Section 2(14) the Income-tax Act and, therefore, its sale does not attract capital gains tax. In contrast, urban agricultural land is treated as a capital asset, and capital gains tax will apply on its sale. Since the land was inherited, the cost of acquisition and the holding period of previous owners will be considered while computing capital gains.
If you have held the land for more than 24 months, your profit is classified as a long-term capital gain and you have to pay tax at 12.5%. If you sell before that, it is considered a short-term capital gain. In that case, the profit is added to your income and taxed at your applicable income tax slab rate.
The writer is partner, Nangia & Company. Send your queries to fepersonalfinance@expressindia.com
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