close x


Capital Gain on sale of old gold


Dear Experts,

I am having 250 grams(Appx) of gold jewellary recived from my ancestor and intending to sale it off to realise cash and use for my business purpose. Now I want to know that  how much capital gain I will  have to pay for the same. I do not posses any document for accuisition cost as the same is more than 30-40 years old  hence how to calculate the total capital gain kindly suggest. Awaiting anearly reply from experts as well as senior boarderss.

Thanking you,

Yours faithfully,

YOGESH SHETH

 
Reply   
 
Chartered Accountant


Find out FAIR MARKET VALUE as on 1.4.1981 and take it as Cost of aquisition (subject to Indexation)


Total thanks : 1 times

 
Reply   
 



 

Full value of consideration (Actual Recvd)             xxx

Less:Indexed Cost of Acuistion                               (xxx)

(FMV as on 1/4/81   x  Cost Inflation Index  

                                            (Yr ofsale)

Cost inflation Index (81-82) .i.e 100)

LessIndexed Costof improvement if any                (xxx)

(cal as above ,bt instead of yr of sal tak ye of improvement)

Long Term Capital Gain (Taxable )


Total thanks : 2 times

 
Reply   
 
* * * * * *


If a person buy the same after 1981 and he didnt remember the buy price then what treatment should follow. Please given your light on this also....

 
Reply   
 
* * * * * *


If a person buy the same after 1981 and he didnt remember the buy price then what treatment should follow. Please given your light on this also....

 
Reply   
 
finance manager


I'm sorry, I was wrong in my previous reply.

 
Reply   
 
ROC and R&D Executive


Amazing ques by Harpreet.

 
Reply   
 
* * * * * *


Everyday everyman or woman as per me learns a new thing. so what matter if i ask question like this?? if you have any problem then discuss with me. As per me no one here is expert in own profile/criteria. If you consider yourself as expert then no one is donkey more than you.

 

You donot expect that a qualify CA (Chartered Accoutant) ask what kind of question. If you want to know then click on below link and then talk with me.

http://www.caclubindia.com/forum/due-date-to-pay-service-tax-146107.asp

 

I hope you understand my things and never put your comments like that.

 
Reply   
 
finance manager


No answer. Why ?

 
Reply   
 
CA-Final and B.Com


As you say gold jewellary received from your ancestor before 30-40 year, that mean before 01/04/1981 and as per income tax provisions if any assets which is acquired before 01/04/1981, firstly you find the Fair Market Value(FMV) as on 01/04/1981. and Let us this Fair Market Value(FMV) as your acquisition Cost on 01/04/1981 afterthat you calculate tax normaly as mention below "STATEMENT ON COMPUTATION OF TAX".

 Note :- Go through Income Tax Ready reckoner Gold Rates as on 01/04/1981 is given, which is Rs.1670/-(for every 10 Grams) 

 

STATEMENT ON COMPUTATION OF TAX

Full value of consideration (Actual Amt Recvd from Sale)        xxx

Less:Indexed Cost of Acquistion                                                (xxx)

(FMV as on 01/04/1981   x  Cost Inflation Index  

                                                        (Year of sale)

Cost inflation Index (81-82) .i.e 100)

LessIndexed Costof improvement if any                                  (xxx)

(Consider only which Improvement cost which incurred after 01/04/1981)

Long Term Capital Gain (Taxable )                                               xxx




 

 
Reply   
 

LEAVE A REPLY



    

Your are not logged in . Please login to post replies

Click here to login   Click here to Register



 



Share on :