Gift tax
This query is : Resolved
30 March 2012
Dear all,
I have received 500grm gold from my mother in law by will after her death and i sold this gold in open market.
Is there is any tax liability! who is liable to pay tax and at what amount?
Pls clerify the matter....
Thanks
I have received 500grm gold from my mother in law by will after her death and i sold this gold in open market.
Is there is any tax liability! who is liable to pay tax and at what amount?
Pls clerify the matter....
Thanks
31 March 2012
The sale of such gold is taxable in your hands under the head Capital Gains.
You will have to determine the period of holding, which will be difference between date of transfer and date of acquisition by your mother-in-law.
If the period of holding is more than 36 months, then it shall be long term capital gain(LTCG), otherwise short term capital gain(STCG).
LTCG is taxable @ 20% and STCG is included in normal income and taxable at slab rate.
Capital gain shall be computed as under:
Sale Consideration
Less: Cost of acquisition
Cost of acquisition shall be the cost for which the gold was acquired by your mother-in-law.
If the gain is LTCG, then the cost of acquisition shall be indexed.
You will have to determine the period of holding, which will be difference between date of transfer and date of acquisition by your mother-in-law.
If the period of holding is more than 36 months, then it shall be long term capital gain(LTCG), otherwise short term capital gain(STCG).
LTCG is taxable @ 20% and STCG is included in normal income and taxable at slab rate.
Capital gain shall be computed as under:
Sale Consideration
Less: Cost of acquisition
Cost of acquisition shall be the cost for which the gold was acquired by your mother-in-law.
If the gain is LTCG, then the cost of acquisition shall be indexed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- ITDS U/S.194T of Firm
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Eway bill not cancelled within 24 hous what can be due
- TDS Return Q1 FY 2026-27
- GST not cancelled by tenant
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
