New Delhi, July 9 -- Gold's sharp rally over the past two years has prompted many investors to book profits in 2026. But before selling your holdings, it is worth understanding how your investment will be taxed, as it could significantly affect your post-tax returns.

Many investors assume all forms of gold are taxed the same way. They are not. The tax rules vary depending on whether you own a Gold Exchange Traded Fund (ETF), a gold mutual fund or physical gold such as jewellery, coins or bars. More importantly, each has a different holding period for qualifying as a long-term capital asset.

The holding period determines whether gains from the sale of gold are treated as short-term or long-term. Under the current tax rules, long-term cap...