Taxability of income on Gold ETFs

This query is : Resolved

R.N.Sahu

R.N.Sahu (Querist)
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16 November 2009 My daughter (a major with her own PAN card but so far not assessed to income tax) had acquired some Benchmark Gold ETFs by gift from me.
She sold the EFTs within 3 years (from original date of purchase by me). Her other source of income interest on FDs. Her total income from interest is Rs.55,000/- and profit from sale of Gold ETFs is Rs.7,500/-.

Whether the profit on Gold ETFs is to be taxed separately. If yes, at what rate? Similarly, what would be the treatment of Debt MFs if sold (i) within 1 year and (ii) sold between 1-3 years.

M Prabhakar Menon

M Prabhakar Menon (Expert)
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17 November 2009 Even if your daughter's income is below the exempt limit its better to file the return showing all sources of income for record purposes. Profit on sale of gold is also to shown as income it forms part of the total income.