In India, you can buy gold in different forms such as physical form like jewellery and coins and other forms like gold mutual fund, gold exchange-traded funds (ETFs), sovereign gold bonds (SGB) and digital gold. Gold mutual funds in turn invest in gold ETFs. The expense ratio is higher in gold mutual fund, compared with gold ETFs. Gains from sale of gold ETFs or gold mutual funds are taxed similarly as that of the physical gold. Income tax on digital form of gold is similar to what is applicable to the physical form of gold or gold ETFs or gold mutual funds.

Source: Mint May 07, 2019 05:14 UTC