When computing income tax, gold exchange traded funds are treated as debt funds. Hence, on redemption, the units of gold ETFs held for more than a year qualify for a long-term capital gain tax of 11.33 per cent without indexation, or 22.66 per cent with indexation. If the period of holding is less than a year, the short-term capital gain will be clubbed with the income of the individual investor, to be taxed as per the applicable tax slab of the investor