Sale of jewellery gift received on marriage

Tax queries 5100 views 6 replies

vivek somani

Accounts and taxation head

91 Points Posted on 14 June 2014

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 ?

Replies (6)

Guest

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.

vivek somani

Accounts and taxation head

91 Points Posted on 14 June 2014

Sorry if my query was no clear. she received the gift 6 year back but sold in current. so now tell d consequences.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 14 June 2014

gift tax will not be attracted if received in marriage. but capital gain will be charged to tax on sale of such gifted jwellery. cost of acquisition being the cost at which it was actually bought.

CA Prateek Garg

CA in Practice

1447 Points Posted on 15 June 2014

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).

vivek somani

Accounts and taxation head

91 Points Posted on 15 June 2014

Since the jewellery was gifted 6 yr ago...neither d assesse has any cost of a acquisition in hand nor FMV at the time of gift...how we can calculate capital gain?

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 15 June 2014

@ vivek somani... if you dont know the cost then the only way to know its FMV of 6yrs back is to get it valued from a certified valuer. the value reported by such valuer shall be deemed to be its cost of acquisition.