Capital gain on sale of gold

This query is : Resolved

bhavesh mistri (Querist)
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31 August 2013 Our client has sold gold in the financial year 2012-13 for Rs. 10,00,000/-. The gold was purchased in the year 2005 for Rs. 6,00,000/-. The client has purchased new gold for Rs. 9,00,000/- one month after sale of old gold.

Kindly advise for capital gain.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 August 2013 Long term capital gain will arise.

Rs. 6 lakhs will be indexed and reduced from Rs. 10 lakhs.

The resultant amount will be long term capital gain/loss.

Purchase of new gold is of no consequence.

LTCG will be taxable @ 20%.