There are four ways to buy gold in India -- 1) Physical Gold via jewellery or coins 2) Gold mutual funds or ETFs 3) Digital gold 4) Sovereign Gold Bonds (SGB). When you sell gold you are taxed and the tax rate depends on the form it is purchased.
1. Tax on gains from physical gold via jewellery and coins
The most common way of buying gold is in the form of jewellery and coins. The taxation for this form of gold depends on how long you held the gold jewellery or coins. If the gold is being sold within three years from the date of purchase then it is considered as short-term.