No capital gains tax if physical gold is converted to e-gold receipt or vice versa: FM Nirmala Sitharaman

Budget 2023: The government said there won't be any capital gain tax if physical gold is converted to an Electronic Gold Receipt (EGR) and vice versa on Wednesday. Finance Minister Nirmala Sitharaman, announced this in her Budget speech for the 2023-24 fiscal and said, "The conversion of physical gold to Electronic Gold Receipt (EGR) and vice versa is proposed not to be treated as a transfer and not to attract any capital gains."

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She added that this would promote investments in electronic equivalent of gold.

EGRs are depository gold receipts traded on the stock exchanges.Under this form, investors buy the gold in dematerialised form and are given gold receipts instead of physical gold. The BSE was the first stock exchange to launch EGRs on its platform.

(with PTI inputs)

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