Dear Members,
I would like to know the consequence and also compliances if any female assesses sale out the the jewellery gift received on occasion of marriage 6 year back and invested that money or lend the money on interest.
Do the assessee required to file the return for the year of sale of goods?
Do capital gain attracted in hand of asessee?
What will be treatment of income generated on receipt from sale of jewelley?
What will documentation required to justify the above transaction ?
Any gift received from any person on the occasion of the marriage of the gift’s recipient would not be liable to income tax at all. So, the jewellery gift is not taxable.
Sale of jewellery attracts capital gain.The jewellery was sold 6 years ago. She cannot file return for that year. I think she should prepare a detailed account of jewellery received and from whom. Also she should keep records (bank stat/ receipts) explaining the amount received on sale of jewellery, the investment thereof and file return for last year and this year if her income crosses the limit.
Sorry if my query was no clear. she received the gift 6 year back but sold in current. so now tell d consequences.
Since Gift is received on the occasion of marrige hence such receipt is not taxable.
However Sale of such gift will attract the LTCG. only question is what should be the Cost of Acquisistion for such jwellery.
Cost of Acquisition shall be Cost of Acquisition in the hands of Previous Owner by virtu of Section 47 & 49(1).
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