Sale of jwellary

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SHRMONEY

solve legal finance problems - shrmone

149 Points Posted on 16 April 2017

My client does not file ITR since income below taxable limit. He is seventy plus . Had filed returns earlier probably in the years 1970 to 1975 when such detailed reporting of assets was not there in ITR.

In the current year he wants to sale gold jwellay of about 4-5 lacs and wants to invest in business.

There are no old buying records The gold may have been purchased around the year 1970 .He may sale the gold in cash Or he can take sale proceeds by draft/cheque.

How to account it in ITR and what will be querries of the dept.

Replies (4)

CA Raj Doshi

Practising CA

8954 Points Posted on 16 April 2017

Prepare 3 years financials. Account various assets liabilities from the records of assessee and third parties.

You will need to know the exact source of jewellery and further offer the gains to tax as LTCG @ 20%.

Neeraj dua

Article Assitant

54 Points Posted on 16 April 2017

Hi do not take sale proceeds in cash as it is prohibited by new inserted section 269ST read it before taking consideration in cash. Your transaction ll be chargeable to cap. gains as calculated under sec 48 u can take FMV as on 01.04.1981 as ur Cost of Acquisition (Refer ready reckner for FMV). on difference of sale price and COA u have to pay tax @ 20.6% including cess as directed by Mr. Raj C Doshi.

SHRMONEY

solve legal finance problems - shrmone

149 Points Posted on 17 April 2017

Ok he will take draft.for sale proceeds.

In the current ITR purchase will be shown in 1981 and after indexation capital gains tax will be paid.

In this situation what will be querry of the IT dept.

Neeraj dua

Article Assitant

54 Points Posted on 17 April 2017

If his case is selected for scrutiny by A.O under section 143. He ll ask for invoice & source of purchase and any other information which he may think neccessary for assessment.