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.
Need advice on Taxation on Silver ETF FOF
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Silver ETF FOF tax: gains under 12 months taxed at slab rate; gains after 12 months taxed flat 12.5%.
Gains on Silver ETF FOFs sold within 12 months are Short Term Capital Gains aggregated with salary and taxed at the investor's slab rate; gains on holdings held beyond 12 months are Long Term Capital Gains taxed at a flat 12.5%. The 20% equity special rate does not apply because Silver ETFs are non-equity instruments. (AI Summary)
Gains on Silver ETF FOFs sold within 12 months are Short Term Capital Gains aggregated with salary and taxed at the investor's slab rate; gains on holdings held beyond 12 months are Long Term Capital Gains taxed at a flat 12.5%. The 20% equity special rate does not apply because Silver ETFs are non-equity instruments. (AI Summary)
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