Yogesh (Business) (98 Points)
28 August 2013Hello friends,
I want to buy a flat worth Rs.50lacs by selling ancestral gold in same financial year .What is the procedure for this? Will any queries come from IT dept. in future? Will they raise objection that why i have not declared this gold till date? or raise penalties for that?
has anyone actually DID this ? comments?
Mihir
(Wealth Manager)
(5293 Points)
Replied 28 August 2013
The question is who is the real owner of this gold? Only an owner can sell this gold and purchase a flat. If you are the owner then when did you become the owner and at what price? Was this gold gifted to you, if yes and in what year? Was a gift deed prepared?
Gold is an capital asset, and selling it will attract long term capital gain.
Yogesh
(Business)
(98 Points)
Replied 28 August 2013
| Originally posted by : Mihir | ||
 |
The question is who is the real owner of this gold? Only an owner can sell this gold and purchase a flat. If you are the owner then when did you become the owner and at what price? Was this gold gifted to you, if yes and in what year? Was a gift deed prepared? Gold is an capital asset, and selling it will attract long term capital gain. |
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Gold was inherited by me from my father and grandfather. no gift deed prepared. LTCG ok but will IT dpt raise queries on where i kept gold all these days .. why not i has declared.. like this
Mihir
(Wealth Manager)
(5293 Points)
Replied 28 August 2013
You need no disclose if gold is not producing any returns. But when you sell gold, you are earning and this earning needs to be disclosed. Cost of acquisition in this case shall be the cost incurred by your father and grandfather in purchasing this gold.
At present gold has touched 34,000/-
Gold prices, historically, is linked to crude oil prices, and when the middle-east countries are in crisis, the crude oil prices is only going to rise, and so will gold prices.
Yogesh
(Business)
(98 Points)
Replied 28 August 2013
can i sell say 50lacs gold this year and again if suppose after 3 yrs requirement arises then also i can sell at that time? or i have to declare full gold at one go and sell as and when need arises? please revert back
CAclubindia
