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Selling ancestral gold

Rakesh (Others) (147 Points)

01 August 2015

Hello friends,

I want to buy a agriculture land worth Rs.5lacs 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?

Since this is ancestral gold and i dont have any kind of source , bill and deed to support that . My Father received from his father and i received from my father . my grand father and my father is no more .

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 01 August 2015

You can search for replies first, a similar query is posted here for your reference /forum/selling-ancestral-gold-to-buy-property-263047.asp Its a capital asset and tax needs to be paid after indexation like in property, LTCG or STCG as the case may be. You may have to go to a govt authorizer value to get gold values for pre 1981 if there are no records with you. Also it depecds who is the owner of this Gold. IMHO To save this income tax, whole Q has to be invested into a house property within two years of sale or this amount has to be invested into capital gain bonds for three years. Also a seller is required to collect tax @ 1% from a buyer of bullion and jewellery if the sale consideration exceeds R5 lakh and the payment is received in cash.