Value of gold
This query is : Resolved
29 December 2016
hello expert
if I have received gold on my own marriage from my father mother etc.
what will be value of such gold?
either current market value or cost to previous owner?
29 December 2016
If u r asking regarding taxability, then I'll say that marriage gifts are fully exempted from tax. Still u wanna know the value then u may ask any gold smith or alike person.
29 December 2016
I want to show gold in my balance sheet, what will be value?
marriage gift are not taxable in hands of person who give that.. but when receiver sale that property than it will be taxable .
am I right
29 December 2016
If u wanna show it in ur balance sheet then transfer it to ur capital account, and show accordingly in balance sheet. In ITR u may show it under exempted income sheet, like dividend etc. column. Better to make a gift deed regarding that gift. Yes the sale proceeds of that income is taxable. Akshay let me tell u one thing that taxability arises when an assessee is receipt of any such income or like that. So taxability will lies in hands of receiver and not provider.
29 December 2016
what amount should I consider while transferring into capital account?
fmv or nominal value or cost to previous owner?
02 January 2017
is there any mandatory requirements for showing such income in itr?
02 August 2025
Here’s a clear approach for **valuing gold received as marriage gift and accounting for it in your balance sheet**:
---
### 1. **Value of gold for Balance Sheet**
* **At what value to record?**
You should record the gold at its **Fair Market Value (FMV) on the date you received it** (i.e., the date of marriage/gift).
* FMV means the current market price of gold per gram/kilo on the date of gift.
* This is consistent with accounting principles—record assets at their current value when acquired.
* **Why FMV?**
Because the gift has no “cost” to you, but to reflect its true economic value in your books, FMV is the appropriate measure.
---
### 2. **Accounting treatment**
* **Entry in books**:
* Debit: Gold (Asset) account with FMV value
* Credit: Capital or Gift received account (equity)
* This means the gold will appear as an asset on your balance sheet at FMV, and the corresponding credit increases your capital or equity.
---
### 3. **Tax implications**
* **Receipt of gold as marriage gift**:
* Exempt from income tax under Section 56(2)(x) of the Income Tax Act in India (gifts on occasion of marriage are fully exempt).
* So, no tax on receipt.
* **Sale of gold later**:
* When you sell the gold, the **capital gains tax** will apply.
* Cost of acquisition for computing capital gains is the **FMV on the date you received the gold** (the date of gift).
* Sale value minus this FMV will be your capital gain or loss.
---
### 4. **ITR Reporting**
* You are **not required to show marriage gifts as income in ITR** because it is exempt.
* However, for transparency, you can disclose the gift under exempt income (if your ITR form allows).
* Keep the gift deed and valuation proof for future reference, especially for capital gains calculation.
---
### **Summary:**
| Question | Answer |
| ---------------------------------------------- | -------------------------------------------- |
| At what value to record gold received as gift? | Fair Market Value on the date of gift |
| How to record in books? | Debit Gold Asset, Credit Capital Account |
| Is the gift taxable on receipt? | No, fully exempt if marriage gift |
| Cost of acquisition for capital gains | FMV on the date of gift |
| Mandatory to show in ITR? | No, but can be disclosed under exempt income |
---
If you want, I can help draft a **gift deed template** or help with calculating capital gains when you sell the gold later. Would you like that?
---
### 1. **Value of gold for Balance Sheet**
* **At what value to record?**
You should record the gold at its **Fair Market Value (FMV) on the date you received it** (i.e., the date of marriage/gift).
* FMV means the current market price of gold per gram/kilo on the date of gift.
* This is consistent with accounting principles—record assets at their current value when acquired.
* **Why FMV?**
Because the gift has no “cost” to you, but to reflect its true economic value in your books, FMV is the appropriate measure.
---
### 2. **Accounting treatment**
* **Entry in books**:
* Debit: Gold (Asset) account with FMV value
* Credit: Capital or Gift received account (equity)
* This means the gold will appear as an asset on your balance sheet at FMV, and the corresponding credit increases your capital or equity.
---
### 3. **Tax implications**
* **Receipt of gold as marriage gift**:
* Exempt from income tax under Section 56(2)(x) of the Income Tax Act in India (gifts on occasion of marriage are fully exempt).
* So, no tax on receipt.
* **Sale of gold later**:
* When you sell the gold, the **capital gains tax** will apply.
* Cost of acquisition for computing capital gains is the **FMV on the date you received the gold** (the date of gift).
* Sale value minus this FMV will be your capital gain or loss.
---
### 4. **ITR Reporting**
* You are **not required to show marriage gifts as income in ITR** because it is exempt.
* However, for transparency, you can disclose the gift under exempt income (if your ITR form allows).
* Keep the gift deed and valuation proof for future reference, especially for capital gains calculation.
---
### **Summary:**
| Question | Answer |
| ---------------------------------------------- | -------------------------------------------- |
| At what value to record gold received as gift? | Fair Market Value on the date of gift |
| How to record in books? | Debit Gold Asset, Credit Capital Account |
| Is the gift taxable on receipt? | No, fully exempt if marriage gift |
| Cost of acquisition for capital gains | FMV on the date of gift |
| Mandatory to show in ITR? | No, but can be disclosed under exempt income |
---
If you want, I can help draft a **gift deed template** or help with calculating capital gains when you sell the gold later. Would you like that?
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