Conversion of physical gold to e-gold receipt and vice versa won't result in capital gains: FM

The government on Wednesday declared that converting actual gold to an Electronic Gold Receipt (EGR) or vice versa won't result in any capital gains taxes.

"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," said finance minister Nirmala Sitharaman in her Budget speech for the 2023-24 fiscal.

This would promote investments in electronic equivalent of gold, she added.


Depository gold receipts, or EGRs, are traded on the stock exchanges. In this arrangement, investors purchase gold in a dematerialized form rather than receiving real gold and are instead given gold receipts. EGRs were originally introduced on the BSE platform, which is a stock exchange.