Income tax on capital gains from sale of personal jewellery

Tax queries 6521 views 10 replies

I bought Gold jewellery for personal use in june 2010 @ Rs 1,61,000 and sold it for Rs 3,07,000 in April 2014. Can you please advise me about the tax liability for the capital gains arising out of this sale and also advise me whether I will be eligible for Indexation benefits and also long term capital gains tax @ 20.6% 

Replies (10)

FVC   :              307000

LESS :

INDEXED COA: 161000*939/632 = 239207

LTCG : 67793

TAX @ 20.6% - 13965

 

PLEASE NOTE THAT IT IS ASSUMED THAT YOU HAVE INCOME UNDER HEADS ALSO AND YOUR TOTAL INCOME EXCEEDS THE EXEMPTION LIMIT SPECIFIED FOR THE YEAR.

IN CASE THIS IS NOT SO YOUR TAX LIABILITY WILL CHANGE TO NIL.

 

REGARDS,

But capital gain will not arise as jewellery used for personal purpose is not regarded as Jewellery'Capital Asset'...
But capital gain will not arise as jewellery used for personal purpose is not regarded as 'Capital Asset'...
I support Radhika pai suggestion Bcz it is not covered under the defination of capital asset

No Radhika 

 

jewellery is a capital assets u/s 2 (14) of income tax act 1956

 

section 2 (14) says that any assets whether movabla or immovable is a capital assets but subject to certain exclusions as given below; (given in short)

1. personal effects like wearing appearls, furniture, utensils, motor /car but it does not jewellery, precisous stones, semi  precisous stones whether sweing in wearing appearls or not.

 

hence long term capital gain arise on sale of jewellery is taxable in the hands of seller.

 

 

yes jewellery is clearly include in capital asset whthr it is for personal use or not....if any one does the business of jewellary than it will be its business income but if he is not doing so than in which head u will make it income??? so it is logically clear that jewellary will be taxable under capital gain head.....

and as per above question the calculation made by Mr. jainendra is accurate.....smiley

Agreed with Mr.Rahul Jewellery is covered under capital assets
The CII for FY 13-14 is 939. The jewellery in this case is sold in April 2014. Is it not correct to apply CII for FY 14-15 ?

but i think cii of 14-15 is not yet availaible

Agree with Calculation of Jainendra Sir. Cost Inflation Index for FY 2014-15 yet not declared by deptt. Last CII declared by deptt in June, 2013.


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