Capital gain on ancestral gold

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 Dear colleagues,
I have a query regarding capital gain on ancestral gold/ornaments
a)If I receive any ancestral gold what will be its tax treatment?
b)If its under ltcg what will be criteria for indexation?
c)Whether benefit of Section 54 can be availed for this?

Thanks in advance.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 August 2013 1. There is NO capital gain when you receive the gold.

Capital Gain will arise when you SELL the gold.

2. The period of holding of the previous owner shall also be considered for computing the total period of holding. If the asset is held for more than 36 months, then it will be a long term capital asset otherwise short term.

3. Indexation benefit is available in case of Long Term Capital Asset.

4. You can avail benefit of Section 54F, not benefit of Section 54.