Please advice me as my mother (HOUSEWIFE) has sold gold ornaments for Rs 660000/- this year Jan 2013 which she had got from her mother-in-law after her death in 1992.
But as I told you that my mother is housewife and she has not filled any IT return in her life. Now please tell me,she have to file IT return as someone told me capital gain tax is implement on this amount.
If she has to file IT return then please advice how much Capital Tax she have to pay.
please advice how I would get the purchasing cost of previous owner (My Grandmother). My mother dont have any receipt from my grandmother. then how much cost of purchase will be assumed. and how much capital tax wil be come.
Mr Ganeshan is right
Cost of acquistion will be taken as the same Cost of acquistion of previous owner (i.e in this case her mother in law)
However, in such a case if the actual date of purchase /or receipt is not available neither is stamped on the jwellery then it is advisable to take the rate of gold prevailing in the year of her marraige and index accordingly...
I believe discussion above has answered first part of your question.
I would like to answer second part :
As per Section 112 of IT Act, 1961 if in case of a resident individual, the total income is lower than maximum exemption limit then the amount of shortfall will be covered by Long Term Capital Gains. It means that whatever Capital Gains you compute will go on to be adjusted with the amount of shortfall of the other income of your mother till the limit of Total Income which is Rs 2 lacs is reached.
Hope it may b sufficient for the second part....
CAclubindia
