Capital Gain and Basic Exemption Limit

Tax queries 498 views 2 replies

Employment

17 Points Joined January 2023

I sold some jewellery for Rs. 3,75,000. It's old jewellery and I don't have purchase invoices with me.

Currently, I don't have any other income.

Please advise whether I am liable to pay capital gain tax and file an income tax return?

Is the basic tax exemption of Rs. 4,00,000 (under the new scheme) is applicable to income, including capital gain?

Am I eligible for a rebate for income up to Rs. 12,00,000, including capital gains?

Replies (2)

Manager - Finance and Accounts

58888 Points Joined June 2010

Item	Answer
Jewellery sale taxable?	Yes — capital gain
Can you claim ₹4,00,000 basic exemption?	Not for LTCG under Section 112
Can you claim rebate up to ₹12,00,000?	No — capital gain not eligible
Must you file an ITR?	Yes
What to do without purchase invoice?	Use FMV as of 1-4-2001 via approved valuer