Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2011 A person have gold that he received as gift in his marriage about 15 years ago and he purchased some gold about 8 years ago.

Now he wants to sale the gold and introduce the money realised in his existing business as capital.

will he have to pay capital gain tax ?
Is there any tax planning to save the tax ?

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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16 September 2011 Yes It will chargeable to Capital Gains under section 45.It shall be Subject to indexation.

Exemption can be seeked by applying funds to investments notified under section 54EC.

Also Section 54F can be seeked.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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16 September 2011 The expert is correct but person concern wants to invest as capital. In these circumstances he is not going to invest in 54EC or 54F.

The only way is to pay the capital gain tax.

The problem which will arise shall be how to prove that he is the owner of the Gold. Has he got any documents for the same. Without documents how he will prove that the he became the owner at the time of his marriage as gold ornaments are generally received in the marriage by the females.

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