How income tax rule applies on capital gains after sale of jewelry

- Advertisement -

Income tax calculator: Gold, silver or any other precious metal jewelry bought by an Indian is considered investment by the income tax department of India. As per the income tax act, if a person sells one’s jewelry then short-term capital gain or long-term capital gain becomes applicable (depending upon the time of acquisition). In the case of gift or inheritance, if the jewelry holder is unable to produce the original bill, then he or she has the option to claim cost of acquisition as on its price on 1st April 2001 by consulting a government recognized jewelry valuer.

Speaking on the income tax rule applicable on one’s capital gain after jewelry sale Pankaj Mathpal, Founder & CEO at Optima Money Managers said, “If the period of acquisition is not more than 36 months, then short-term capital gain will be applied on the However, in the case of jewelry acquisition being more than 36 months long term capital gain will be applied.”

Pankaj Mathpal of Optima Managers said that in the case of long term capital gain on jewelry sale, one will be able to get indexation benefit and the payable tax will be 20.8 per cent (20 per cent income tax plus 4 per cent cess payable on the net income). However, in the case of short term capital gain, one’s net income from the jewelry sale will get added in one’s regular income and the income tax will become payable as per the income tax slab in which the individual falls.

On how the acquisition cost will be decided if the jewelry sold was gifted or inherited and the owner is unable to produce its original bill Balwant Jain, a Mumbai-based tax and investment expert said, “In case of gift or inheritance of the jewelry, the owner can claim its acquisition cost as per its price on 1st April 2001. One can get its valuation done by consulting a government recognized jewelry valuer.”

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!


Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link


Stone quarry accident: missing lorry driver yet to be located

Despite two rounds of controlled explosions, triggered on Saturday, to blast boulders and remove stones for reaching the hitherto...

Govt. amends Revenue Standing Order to facilitate exchange of land

The Tamil Nadu government has recently amended some provisions in the Revenue Standing Order 26 (A) to streamline the procedures for the exchange of...

Andhra Pradesh: Red Cross contract employee ‘attempts suicide’ in Kurnool

A contract employee, Ramanjaneyulu, working as a lab technician in the Indian Red Cross Society Blood Bank here attempted suicide on Saturday by dousing...

Andhra Pradesh: man murders live-in partner, her brother

A man had allegedly murdered his live-in partner and her brother by crushing their heads with a boulder at Jandrapeta hamlet of Sodam mandal...

Andhra Pradesh: Drowning in losses, Madanapalle’s tomato farmers depend on imports

They intend to buy stocks from Haryana, where prices are low, to sell them back here They intend to buy stocks from Haryana, where prices...
- Advertisement -

More Articles

- Advertisement -