The tax treatment to the profits booked on selling physical gold is similar to that of any capital asset.
If you invest in physical gold in the long-term, that is more than three years, then the tax deducted will be 20 per cent of the gains.
On the other hand, if you sell it before three years, the tax treatment will be according to the tax slab you fall in depending upon your income bracket.
Any gold you hold in physical form will be liable for wealth tax.
Also see: Shopping for gold