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Is jeweler received during the occasion of marriage taxable

amrith (Article traineee) (77 Points)

19 July 2017

I have received 7Lakhs jewlery of my mother at the time of Marriage and latter i sold and brought a house is this taxable.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 19 July 2017

Part I Jewellery/Gift received on marriage......... tax-exempt.......

Part II: Jewellery sold....... capital gain........ invested in house property.... Exempted u/s 54F of IT act (subject to other conditions)

CA Ankit Agarwal (CA, CS) (688 Points)
Replied 24 July 2017

The Jewellery received by you from your mother is not chargeable to tax under the provisions of I-T Act.

However, it is advisable to prepare a Gift Deed to prove the genuineness of the gift by identifying the donor, the donee and also the descripttion of the jewellery gifted.

The gain on sale of the said jewellery same will be chargeable to tax under the head "Long-Term Capital Gains" .

If you wish to acquire a residential property out of the sale proceeds of the jewellery, then subject to complying with the provisions of Section 54F, the deduction from capital gains can be claimed .