Gold Received from Father and Mother

This query is : Resolved

CA.SHAHZAD SAYYED (Querist)
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20 July 2011 Dear Colleagues

kindly let me clear about following-

a person who doesn't required to file IT Return got the 500 GMS Gold from his Father & mother, he possess all Receipts, Father has died and mother is alive with one brother and one sister, now we want to make balance sheet so can we directly put all Gold with Current Value in his B/s, his mother , Brother and sister are ready to renunciate their right and they can give power of attorny
pls guide me with all do's and don'ts

U S Sharma

U S Sharma (Expert)
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20 July 2011 1) make a schedule of gold in terms of weight purity and name

viz .....1 No necklace .22 carat .......18.775 grams

2) no need to get valuation on present date, it would be cost in hands of previous owner, and get their declaration only regarding valuation.

3) untill sold, there is no tax implication or capital gain, so revaluation at current date will entitle him to pay capital gain tax,

4) get a certificate from mother regarding handover of such gold as gift, countersigned by all members of family

5) such receipt ( at cost in hands of previous owner) would be direct capital receipt and would not invite any tax.