Capital Gain and Basic Exemption Limit

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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)
Quick Summary
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.

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

Thanks for the valuable inputs

 

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