Capital gain

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This query is : Resolved

anshulgoel (Querist)

09 August 2011 Please tell me....if one have jewellery at his home and he wants to sell it then how to determine the COA of jewellery for capital gain purpose.....???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 August 2011 The valuation is required for cost of acquisition. Normally, in case of such jewellery valuation as on 1.4.1981 is taken as it can be said that this is old jewellery and held from past so many years.

Question of holding can be solved by keeping the events like death, inheritance, gift etc. into mind. The period of holding is calculated in terms of the assessee.

So valuation of 1.4.1981 will be indexed on the basis of the holding period of asset by the assessee.

CA Manish Agrawal

CA Manish Agrawal (Expert)

10 August 2011 If You have Bill of a Registered Dealer/ other Documentary Authentic Proof of Purchase you may calculate your cost of Acquisition. Otherwise as per Purity and weight of said jewellery and year of Acquisition you may compute cost of acquisition of Gold Rates Chart prescribed by IT Department.
But Your said Document should be in a manner that may suffice before AO to his/her Satisfaction regarding existence in that Year
, otherwise you will be in trouble.
Manish J. Agrawal CA SAP DISA DIRM

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