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Ramalingam Kalirajan |11455 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 19, 2026

Ramalingam Kalirajan has over 26 years of experience in MF distribution and wealth management. He holds an MBA in Finance from the University of Madras and is a CFP (Certified Financial Planner) credentialed professional. He is the Director of Holistic Investment, a Chennai-based AMFI-registered Mutual Fund Distribution (ARN-4188) and APMI-registered PMS Distribution firm (APRN07386), helping clients build long-term wealth through mutual funds and other investment solutions.... more

Question by Rajat on Aug 10, 2026

RESPECTED SIR, WE HAVE SOME 300 GM OF OLD BROKEN GOLD OF NO USE CAN WE SELL IT AND BUY SAME AMOUNT OF FRESH GOLD DOES THIS ATTARCTS LTCG IF YES THEN PERCENTAGE PLEASE

Ans: Yes, selling old physical gold can create a capital gains tax liability.

The fact that you buy fresh gold of the same weight does not cancel the sale.

Tax is considered on the sale of the old gold.

» If You Have Held The Gold For More Than 24 Months

Gold is treated as a long-term capital asset after 24 months.

Long-term capital gains on physical gold are generally taxed at 12.5%.

Indexation benefit is not available under the current rules.

The gain is based on the sale value and your eligible acquisition cost.

» If The Gold Was Purchased Long Ago

For very old gold, keep whatever purchase evidence you have.

If the gold was acquired before 1 April 2001, special valuation rules may apply.

A fair market value as on 1 April 2001 can generally be considered.

This point can materially affect the taxable gain.

» Buying Fresh Gold

Buying fresh gold after selling the old gold does not automatically provide tax exemption.

You may still have to pay capital gains tax on the old gold.

The new gold becomes a separate investment.

Its cost will generally be the amount paid for the new gold.

» One Practical Point

If the old gold is broken jewellery, check whether exchange is treated as a sale.

The tax treatment can depend on how the jeweller structures the transaction.

Get a proper bill showing old gold value and new gold purchase value.

Keep the transaction records safely.

» Final Insights

You can certainly replace the old gold with fresh gold.

But do not assume that equal weight means no tax.

If the old gold was held over 24 months, LTCG is generally taxed at 12.5%.

The exact tax depends on your acquisition history and transaction value.

For 300 grams, the value can be substantial.

So, before the transaction, get the old gold valuation and tax impact checked.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/

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