Taxability of istri-dhan
This query is : Resolved
09 February 2013
Can anybody tell me About taxability of Istridhan?
what is included in Istridhan?
what is included in Istridhan?
09 February 2013
Stri Dhan, as a matter of respect to a women is not taxable upto certain limit which keeps on changing every year.
Please elaborate your question from which point of view you need a answer.
Please elaborate your question from which point of view you need a answer.
10 February 2013
Sir Karan,
Actually my question is my client have sold gold he told me it is not taxable because it is Istridhan and so no taxabality will arise plz explain me
also give section in which istridhan is exempt
Actually my question is my client have sold gold he told me it is not taxable because it is Istridhan and so no taxabality will arise plz explain me
also give section in which istridhan is exempt
11 February 2013
This is what i found somethin interesting. Please have a look -
Legal interpretation of STRIDHAN
The word ''Stridhan '' is, as you know, derived from the words stri meaning woman and dhana meaning property. Essentially a word and concept, which comes down centuries from the Hindu smritis but has today, permeated all forms of marriages in all castes and religions.
What is stridhan?
According to the age old smritis and all old schools of Hindu law such as Dayabhaga, Mitakshara etc. the following was Stridhan in the hands of a woman be it a maiden, married woman or widow.
Gifts made to a woman before the nuptial fire.
Gifts made to a woman at the bridal procession
Gifts made in token of love by father-in-law, mother-in-law
Gifts made by father, mother and brother
This was not an exhaustive list so gifts made after marriage by a woman's husband's relations or parent's relations and gifts from sons and relations got added to the list as so did many more as can be seen here.
What else is included?
Whether a particular kind of property acquired by a woman was Stridhan or not depended on the source from which the property was acquired and her status at the time of acquisition whether she acquired it during her maidenhood, subsistence of marriage or widowhood.
Gifts and bequests from a woman's relations during maidenhood, subsistence of marriage or widowhood is all Stridhan.
Gifts and bequests from strangers during maidenhood, subsistence of marriage or widowhood is all Stridhan.
In effecting Partition if as an absolute gift or interest a share is given to a woman whether during her maidenhood, marriage or widowhood the same amounts to her stridhan.
Inherited propertyProperty inherited by a woman becomes her stridhan.Property acquired by a woman by mechanical arts or by her own exertions during maidenhood, subsistence of marriage and during widowhood is Stridhan.Property obtained by a woman by compromise or family arrangement where there is no presumption of her taking only a life interest, becomes her Stridhan.Property obtained by a woman by adverse possession during maidenhood, subsistence of marriage and during widowhood is Stridhan.Property purchased with Stridhan is a woman's Stridhan.
Gifts made to husband during and after marriage are not Stridhan. In case of a dispute over whom were the gifts made to, more often than not woman is given a priority over the husband.
Rights of a woman over her Stridhan:
The woman has an absolute, exclusive dominion over all her Stridhan including movable and immovable property and has the power to sell, alienate or give it away as she pleases both during her lifetime and thereafter. Her husband and / or his family members have no rights over a woman's Stridhan.
It is usually practical and preferable that any girl especially educated girls of today maintain a list of their Stridhan as also become capable of looking after their own Stridhan in terms of its security such as opening a bank locker in their single names for the purposes of storing jewellery and instruments of money, property etc. or keeping it under their lock and key.
Legal interpretation of STRIDHAN
The word ''Stridhan '' is, as you know, derived from the words stri meaning woman and dhana meaning property. Essentially a word and concept, which comes down centuries from the Hindu smritis but has today, permeated all forms of marriages in all castes and religions.
What is stridhan?
According to the age old smritis and all old schools of Hindu law such as Dayabhaga, Mitakshara etc. the following was Stridhan in the hands of a woman be it a maiden, married woman or widow.
Gifts made to a woman before the nuptial fire.
Gifts made to a woman at the bridal procession
Gifts made in token of love by father-in-law, mother-in-law
Gifts made by father, mother and brother
This was not an exhaustive list so gifts made after marriage by a woman's husband's relations or parent's relations and gifts from sons and relations got added to the list as so did many more as can be seen here.
What else is included?
Whether a particular kind of property acquired by a woman was Stridhan or not depended on the source from which the property was acquired and her status at the time of acquisition whether she acquired it during her maidenhood, subsistence of marriage or widowhood.
Gifts and bequests from a woman's relations during maidenhood, subsistence of marriage or widowhood is all Stridhan.
Gifts and bequests from strangers during maidenhood, subsistence of marriage or widowhood is all Stridhan.
In effecting Partition if as an absolute gift or interest a share is given to a woman whether during her maidenhood, marriage or widowhood the same amounts to her stridhan.
Inherited propertyProperty inherited by a woman becomes her stridhan.Property acquired by a woman by mechanical arts or by her own exertions during maidenhood, subsistence of marriage and during widowhood is Stridhan.Property obtained by a woman by compromise or family arrangement where there is no presumption of her taking only a life interest, becomes her Stridhan.Property obtained by a woman by adverse possession during maidenhood, subsistence of marriage and during widowhood is Stridhan.Property purchased with Stridhan is a woman's Stridhan.
Gifts made to husband during and after marriage are not Stridhan. In case of a dispute over whom were the gifts made to, more often than not woman is given a priority over the husband.
Rights of a woman over her Stridhan:
The woman has an absolute, exclusive dominion over all her Stridhan including movable and immovable property and has the power to sell, alienate or give it away as she pleases both during her lifetime and thereafter. Her husband and / or his family members have no rights over a woman's Stridhan.
It is usually practical and preferable that any girl especially educated girls of today maintain a list of their Stridhan as also become capable of looking after their own Stridhan in terms of its security such as opening a bank locker in their single names for the purposes of storing jewellery and instruments of money, property etc. or keeping it under their lock and key.
11 February 2013
Sir
plz tell me
sale of stri dhan is taxable or not plz also wright section?
if taxable than to what extent?
plz tell me
sale of stri dhan is taxable or not plz also wright section?
if taxable than to what extent?
26 July 2025
### ✅ **Taxability of Stridhan – Explained**
---
### 🔹 What is **Stridhan**?
**Stridhan** refers to the **property or gifts received by a woman** during her lifetime, especially on occasions such as:
* Before marriage
* At the time of marriage (e.g. jewelry, cash, property)
* During her married life
* On childbirth
* From parents, relatives, or friends
Stridhan is recognized under Hindu law, and a woman has **absolute ownership** over it — she can use, gift, sell, or bequeath it freely.
---
### 🔹 Taxability of Stridhan under Income Tax Act
The **concept of "Stridhan"** has **no special exemption under the Income Tax Act** unless it falls under specific exempted categories. So, taxability is determined **based on the nature of the item and how it was acquired or disposed of**.
---
### 🔸 Case: **Sale of Gold (Stridhan)**
If your client **sells gold** (which was received as Stridhan), here's how taxability will apply:
#### ✅ 1. **Capital Gains Tax will apply**
Gold is a **capital asset** under section **2(14)** of the Income Tax Act. Therefore:
* When she **sells the gold**, the profit from the sale will be **taxed as Capital Gains**.
* The period of holding (more or less than 3 years) determines the type of capital gain.
| **Holding Period** | **Type of Gain** | **Tax Treatment** |
| ------------------ | ----------------------- | ----------------------------------------------------- |
| ≤ 3 years | Short-Term Capital Gain | Taxed as per slab rate |
| > 3 years | Long-Term Capital Gain | Taxed @ **20% with indexation** under section **112** |
#### ✅ 2. **Cost of Acquisition**
If **gold was received as a gift (e.g., Stridhan)**, the cost of acquisition will be:
> The **cost to the previous owner**, i.e. the person who gifted the gold (e.g., parents).
Also, indexation benefit is available **from the year in which the previous owner first acquired it**, if it is long-term.
#### ✅ 3. **Disclosure**
Even though received as gift, **any subsequent sale** is **taxable**, and must be disclosed under **Schedule CG** (Capital Gains) in the income tax return.
---
### 🔸 Section-wise Reference:
| **Relevant Provision** | **Details** |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Section 2(14)** | Gold is a "capital asset" |
| **Section 47** | Gift not treated as transfer for donor, but not exempt for recipient on sale |
| **Section 49(1)** | Cost to previous owner applies in case of gift |
| **Section 56(2)(x)** | Gift of movable property (like gold) is **not taxable** if received from a **relative** (e.g., parents, husband, in-laws) |
---
### 🔹 Summary
| **Item** | **Taxability at Receipt** | **Taxability on Sale** |
| --------------------------------------------------------- | ------------------------------------- | ----------------------------------------------------- |
| Stridhan gold received from relatives (e.g., at marriage) | **Exempt** under **section 56(2)(x)** | **Taxable** as **Capital Gains** under **section 45** |
| If holding period > 3 years | — | **LTCG @ 20% with indexation** |
| If holding period ≤ 3 years | — | **STCG at slab rate** |
---
### ✅ Conclusion
> **Yes**, the **sale of Stridhan (e.g., gold)** is **taxable** under the head **Capital Gains**, and there is **no blanket exemption** for "Stridhan" under the Income Tax Act.
You must compute capital gain considering **holding period**, **cost to previous owner**, and apply **indexation** if it's a long-term gain.
Let me know if you need help with capital gains computation in your client's case.
---
### 🔹 What is **Stridhan**?
**Stridhan** refers to the **property or gifts received by a woman** during her lifetime, especially on occasions such as:
* Before marriage
* At the time of marriage (e.g. jewelry, cash, property)
* During her married life
* On childbirth
* From parents, relatives, or friends
Stridhan is recognized under Hindu law, and a woman has **absolute ownership** over it — she can use, gift, sell, or bequeath it freely.
---
### 🔹 Taxability of Stridhan under Income Tax Act
The **concept of "Stridhan"** has **no special exemption under the Income Tax Act** unless it falls under specific exempted categories. So, taxability is determined **based on the nature of the item and how it was acquired or disposed of**.
---
### 🔸 Case: **Sale of Gold (Stridhan)**
If your client **sells gold** (which was received as Stridhan), here's how taxability will apply:
#### ✅ 1. **Capital Gains Tax will apply**
Gold is a **capital asset** under section **2(14)** of the Income Tax Act. Therefore:
* When she **sells the gold**, the profit from the sale will be **taxed as Capital Gains**.
* The period of holding (more or less than 3 years) determines the type of capital gain.
| **Holding Period** | **Type of Gain** | **Tax Treatment** |
| ------------------ | ----------------------- | ----------------------------------------------------- |
| ≤ 3 years | Short-Term Capital Gain | Taxed as per slab rate |
| > 3 years | Long-Term Capital Gain | Taxed @ **20% with indexation** under section **112** |
#### ✅ 2. **Cost of Acquisition**
If **gold was received as a gift (e.g., Stridhan)**, the cost of acquisition will be:
> The **cost to the previous owner**, i.e. the person who gifted the gold (e.g., parents).
Also, indexation benefit is available **from the year in which the previous owner first acquired it**, if it is long-term.
#### ✅ 3. **Disclosure**
Even though received as gift, **any subsequent sale** is **taxable**, and must be disclosed under **Schedule CG** (Capital Gains) in the income tax return.
---
### 🔸 Section-wise Reference:
| **Relevant Provision** | **Details** |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Section 2(14)** | Gold is a "capital asset" |
| **Section 47** | Gift not treated as transfer for donor, but not exempt for recipient on sale |
| **Section 49(1)** | Cost to previous owner applies in case of gift |
| **Section 56(2)(x)** | Gift of movable property (like gold) is **not taxable** if received from a **relative** (e.g., parents, husband, in-laws) |
---
### 🔹 Summary
| **Item** | **Taxability at Receipt** | **Taxability on Sale** |
| --------------------------------------------------------- | ------------------------------------- | ----------------------------------------------------- |
| Stridhan gold received from relatives (e.g., at marriage) | **Exempt** under **section 56(2)(x)** | **Taxable** as **Capital Gains** under **section 45** |
| If holding period > 3 years | — | **LTCG @ 20% with indexation** |
| If holding period ≤ 3 years | — | **STCG at slab rate** |
---
### ✅ Conclusion
> **Yes**, the **sale of Stridhan (e.g., gold)** is **taxable** under the head **Capital Gains**, and there is **no blanket exemption** for "Stridhan" under the Income Tax Act.
You must compute capital gain considering **holding period**, **cost to previous owner**, and apply **indexation** if it's a long-term gain.
Let me know if you need help with capital gains computation in your client's case.
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
- ITC Re-claimable Ledger
- F & O Loss Audit Requirement
- Make-up ITC- Eligibility
- Overtime income in salaried person case
- New tax regime and old tax regime.
- RCM invoice related QRMP
- Regarding GST applicability on RWA
- Rectification of error U/s 154
- BUSINESS +STOCKS
- Upload Verification Error ITR 3 AY205-26
- GST registration /aadion a new place of business in the same state and city
- CSR Applicability FY 2425
- Late fee CMP-08 FY 2021-22
- Mismatch in gstr-1 and eway bill invoice no
- Clarification Regarding Tax Deduction at Source on Receipt Against Issuance of Privilege Voucher
- GST TDS on metal scrap
- ITC Inter head difference
- 80CCD(2) of IT ACT
- Guidance for proper GST accounting (eway bill with correct valuation) for cut-to-pack job work given
- GST Treatment multiple delivery services
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
