cash payments

Sale of Jewellery attracts capital gain. If it is held for less than 3 years, then Short Term Capital will arise and if held for more than 3 years, then Long term Capital Gain will arise.

Tax @ 20% on Long Term Capital Gain

Tax @ 15% on Short Term Capital Gain.

Calculation of Capital Gain:-

Sale Value                                               XX (Amount)

Less: Indexed Cost of Acquisition        XX

                                                                     XX

Formula for caluculating Indexed Cost of Acq.  = cost of acq. of Asset mulitplied by index rate of year of selling divided by  index rate of year of purchase

Note : Indexation benefit not available in Short Term Capital Gain.

Happy Diwali..!!Enjoy..!!

Regards,

Devendra. K

Dear pankaj,

        In your case, the cost of acquisation will be nill since you have not actually bought it, hence the capital gains will be calculated on the full sale consideration as reduced by any selling expense.

** Only if you had recieved the jewellery from your parents, then u/s 49 the cost of acquisation will be taken as cost to the previous owner i.e cost to your parents. But I would advise you to take a second opinion on this provision.

Regards,

Kunal Mangal

I agree with Kunal
 

But Sirs, this cash and jewellery was recieved by my wife as gift from her relatives at the time of marriage. Is this type of gift taxable? Even my grandmother is holding jewellery for years together.Dont know what is the original cost of acquisition?How will it be taxed? Please Clarify the whole issue and guide me.