Capital Gain on sale of old gold

Tax queries 25524 views 13 replies

yogesh sheth

director

94 Points Joined June 2009

Dear Experts,

I am having 250 grams(Appx) of gold jewellary recived from my ancestor and intending to sale it off to realise cash and use for my business purpose. Now I want to know that how much capital gain I will have to pay for the same. I do not posses any document for accuisition cost as the same is more than 30-40 years old hence how to calculate the total capital gain kindly suggest. Awaiting anearly reply from experts as well as senior boarderss.

Thanking you,

Yours faithfully,

YOGESH SHETH

Replies (13)

CA AMANPREET SINGH

Chartered Accountant

284 Points Joined October 2009

Find out FAIR MARKET VALUE as on 1.4.1981 and take it as Cost of aquisition (subject to Indexation)

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

Full value of consideration (Actual Recvd) xxx

Less:Indexed Cost of Acuistion (xxx)

(FMV as on 1/4/81 x Cost Inflation Index

(Yr ofsale)

Cost inflation Index (81-82) .i.e 100)

Less: Indexed Costof improvement if any (xxx)

(cal as above ,bt instead of yr of sal tak ye of improvement)

Long Term Capital Gain (Taxable )

Harpreet

* * * * * *

1670 Points Joined March 2008

If a person buy the same after 1981 and he didnt remember the buy price then what treatment should follow. Please given your light on this also....

Harpreet

* * * * * *

1670 Points Joined March 2008

If a person buy the same after 1981 and he didnt remember the buy price then what treatment should follow. Please given your light on this also....

Rup Kumar

finance manager

288 Points Joined March 2011

I'm sorry, I was wrong in my previous reply.

Mehul Jain

ROC and R&D Executive

59 Points Joined May 2011

Amazing ques by Harpreet.

Harpreet

* * * * * *

1670 Points Joined March 2008

Everyday everyman or woman as per me learns a new thing. so what matter if i ask question like this?? if you have any problem then discuss with me. As per me no one here is expert in own profile/criteria. If you consider yourself as expert then no one is donkey more than you.

You donot expect that a qualify CA (Chartered Accoutant) ask what kind of question. If you want to know then click on below link and then talk with me.

/forum/due-date-to-pay-service-tax-146107.asp

I hope you understand my things and never put your comments like that.

Rup Kumar

finance manager

288 Points Joined March 2011

No answer. Why ?

Sandeep Surana

Practicing Chartered Accountant

156 Points Joined November 2008

As you say gold jewellary received from your ancestor before 30-40 year, that mean before 01/04/1981 and as per income tax provisions if any assets which is acquired before 01/04/1981, firstly you find the Fair Market Value(FMV) as on 01/04/1981. and Let us this Fair Market Value(FMV) as your acquisition Cost on 01/04/1981 afterthat you calculate tax normaly as mention below "STATEMENT ON COMPUTATION OF TAX".

Note :- Go through Income Tax Ready reckoner Gold Rates as on 01/04/1981 is given, which is Rs.1670/-(for every 10 Grams)

STATEMENT ON COMPUTATION OF TAX

Full value of consideration (Actual Amt Recvd from Sale) xxx

Less:Indexed Cost of Acquistion (xxx)

(FMV as on 01/04/1981 x Cost Inflation Index

(Year of sale)

Cost inflation Index (81-82) .i.e 100)

Less: Indexed Costof improvement if any (xxx)

(Consider only which Improvement cost which incurred after 01/04/1981)

Long Term Capital Gain (Taxable ) xxx

Sandeep Surana

Practicing Chartered Accountant

156 Points Joined November 2008

Mr. Harpreet, If Assessee no have any proof of "Cost of Acquisition" or not remember the cost of Acquisition than two way you get the Acquisition cost

1. You go through Rates which is given in Income Tax Ready Reckoner or

2. You go through Valuer report(In Market easily available, so if required than pay and got the report)

I think so no any other best option but if any than update me plz.

thanks

Puneet Singh

Accountant

23 Points Joined January 2011

Dear Sir,

Is there is any way to adjust this type of Capital Gain. i m just saying that like there is way to save tax on capital gain arrising from sale of property, is there is any way to save tax on above capital gain?????

Anooj

Chartered Accountant

2130 Points Joined December 2011

Just find a fair market value as on 1/4/1981 and indexation benefit shall be available 4 the same. That amt of cost of aquisition shall be allowd to deduct from sales consideration.

Abhishek Jain

21 Points Joined January 2014

Dear Experts ,

I have a gold jewellery received in june 13 from inheritance valued from the certified valuer on date of inheritance as rs. 650000 which is sold in the same year (nov 13) for rs. 700000 , then what will be the accounting treatment of the above mentioned transaction? whether it is only shown as rs.50000 short term capital gain & added to the capital of Proprietor..