Hello ALL ,
I have inherited some Family GOLD from parents , i want to give half of it to sister as GIFT as per my PARENTS WISHES - we all are okay with it . I dont want to do any gift deeds etc ::
I dont have Job from last 3 years and have negligible income since last 3 YEARS , my file is not up to date from many years
My Question is i want to convert gold to cash , the full amount received as FD and give it her so that she get 8-9% ANNUAL is this possible
Will there be any TAX enquiry for her - Just to mention 200 gms * 16000 = 32 LAKHS APPROX
FYI - she is married and inlaws have maintained seprate file for her
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CASH AS GIFT OR FD AS GIFT
Replies (6)
Quick Summary
✔ Gift to sister is tax-free in her hands.
✔ Interest on FD taxable to her.
✔ But you must pay capital gains tax on gold sale.
✔ Documentation strongly recommended.
✔ Filing updated ITR advisable to avoid scrutiny.
Do not sell all at once
To avoid tax invest in long term capital asset depending on the nature of holding.
U should have proof for inherited gold if at all scruitiny comes up or it will be treated as unexplained income
If u want cash sale of jwellery then jwellery will ask for KYC for reporting Cash sales in SFT
Reflecting in itr will attract itr filing and if scruitiny for sales reported in itr pops up u will need proper documents to prove inherited gold and then gift deed to sister
If no proper documents then it will be treated as unexplained income and taxed heavenly accordingly with penalty
No disclosure required in itr.
then its better to give her as cash , as i want to avoid any taxation for me or her
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