Tax Provision on Sale of Mother jewelry (after her death)

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When selling inherited jewellery, especially items passed down over 50 years, the key question is whether to treat the profit as capital gains or exempt income. For items owned before April 1st, 2001, the cost of acquisition should be the fair market value on that date, which can be determined by a registered valuer. This value is then used to calculate the indexed cost for long-term capital gains tax purposes.

Arvind Mishra

Arvind Mishra (Querist)
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05 July 2023 Hi
I have one Client, he had sale his Mother Jewelry ( mother was death 10 years back) and this jewelry was around 50 years old and sale value is of Rs.7 lakh, whether this type of income should be calculate Capital Gain or this will be exempt income. and where need to show in ITR
Please guide on the same.
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 July 2023 It is to be declared under Long term capital gains. COA should be market value as on 1st Apr., 2001.

Arvind Mishra

Arvind Mishra (Querist)
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05 July 2023 Sir,
Client Didn't know the Acquisition cost of that time(because jewelry was 50 years old and not having any bills), then how to take that amount, for calculating Indexed acquisition cost.
Please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 July 2023 Get the Fair market value of the jewelry as on 01.04.2001, from registered valuer. That will be COA for calculating LTCG.

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