My mother is 72 years old and she sold her ancestral gold for 20 lakh in March. She got the receipt also from Jeweler and he gave her check, which was deposited in her account.
Now at time of tax filing, I am seeing conflicting answers, if she will need to pay anything.
- I am reading in some blogs that, if she invest this 20 lakh in govt bonds, she won't have to pay any tax under 54ec.
- Other blog says gold sale was removed from 54ec, so if there is no buy price known (it is ancestral since more than 70 years), gold price of 1st April 2001 will be considered and as per index on capital gain, taxes needs to be paid.
- Another say that within some months of gold sale, same money can be invested in govt bond and that will avoid any taxes.
- Or there should not be any tax paid on this? He mother's mother gave her that gold.
Please advice, if taxes can be saved on this sale.
Thanks
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Any tax to be paid for ancestral gold sale?
1. First you need to find out long term capital gains based on FMV of gold as on 01.04.2001.
2. 20% of the LTCG (with indexation benefit) as arrived based on step 1 will be tax liability. The same gets reduced based on reduction by any difference between aggregate income and exemption limit.
3. No tax saving based on investment in sec. 54EC bond or gold bonds.
4. Only option is sec. 54F, which you may not prefer.
There is no valuation certificate. Jeweler gave the receipt, which has total grams (347 grams) and total amount (around 20 lakj), for which he gave her check.
Gold price was 4,400 Rs/10 gram in 2000. How 20% will be calculated from that?
20% will be huge tax to be paid, but looks like there is no way out to save tax
Jwellers will not give certificate.....we have to get certificate from redg valuers as stated above.....so that the value of jwellery as certified is accepted valuation by income tax department
Why 20%
| Originally posted by : sabyasachi mukherjee | ||
 |
Cost of accquistion date from ancestorWhy 20% |  |
That is what, my question too
Update - this is correct that tax needs to be paid as suggested above. But as I read more, I can invest some 15 lakh in Capital Gain Account and my tax will be nill then
https://www.pnbindia.in/capital-gain-account.html
But I am not clear on, for how long this investment should stay in this account. What should be minimum maturity tenure I can opt?
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