Need advice on Taxation on Silver ETF FOF

[Faizan Uddin]

I am in new tax regime and have CTC of 8LPA. I have invested in Silver ETF for. If I sale my investment in less than 2 years, then will my tax on gains would be 20% special rate of STCG or would it be applicable at income tax slab rate. Since my CTC is less than 12 lacs, then selling in less than 2 years would help me save on tax.

AI Summary

Commodity fund holding silver: sales within two years taxed as short-term capital gains at regular income tax slab rates If the fund holds silver (a commodity) and is not treated as an equity-oriented scheme, gains on sale within two years will be short-term capital gains taxed at your ordinary income-tax slab rates under the new regime. The concessional 15%/20% long-term rates with indexation apply only when the asset qualifies as long-term (typically >36 months for non-equity/commodity-linked funds) or specific long-term provisions, and the special short-term 15% equity/STT-linked rate does not apply. Your CTC or new tax regime selection does not convert short-term capital gains into the special lower rate.