CASH AS GIFT OR FD AS GIFT

✔ 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