Capital Gain and Basic Exemption Limit

This discussion clarifies capital gains tax implications on selling jewellery, especially when purchase invoices are unavailable. It explains that the sale is taxable as a capital gain. Importantly, the basic tax exemption limit of ₹4,00,000 under the new scheme is not applicable to Long Term Capital Gains (LTCG) under Section 112, nor is the rebate for income up to ₹12,00,000. You will need to file an Income Tax Return. If you lack purchase invoices, the Fair Market Value (FMV) as of 1st April 2001, determined by an approved valuer, can be used.