Dear Mr. Ritesh,
If you give your gold to your daughter as gift and then she sells it out then in that case cost of acquisition for her would be the price at which you bought it. Time period for which you had such gold will also be taken into consideration to decide whether it is long-term or short-term.
Eg. If you purchased in Oct. 2008 for Rs. 10,000/-, gave gift to your daughter in Nov. 2011 and your daughter sells it in Dec. 2011 for Rs. 35,000/- then period of holding will be considered from Oct. 2008 only and not from Nov. 2011. Cost of acquisition will be indexed value of Rs. 10,000/- and not Rs. 10,000/- itself.
Suppose in above case you had received such gold from your father as gift or under will then period will be taken from the date your father had purchased it and acquisition cost will be indexed cost of value for which your father had purchased.
This provision is given u/s 49(1) of the Income Tax Act, 1961.
I hope now it's clear to you.
Regards,
CAclubindia
