Gift tax

This query is : Resolved

Nitesh Sethiya (Querist)
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30 March 2012 Dear all,

I have received 500grm gold from my mother in law by will after her death and i sold this gold in open market.
Is there is any tax liability! who is liable to pay tax and at what amount?
Pls clerify the matter....
Thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 March 2012 The sale of such gold is taxable in your hands under the head Capital Gains.

You will have to determine the period of holding, which will be difference between date of transfer and date of acquisition by your mother-in-law.

If the period of holding is more than 36 months, then it shall be long term capital gain(LTCG), otherwise short term capital gain(STCG).

LTCG is taxable @ 20% and STCG is included in normal income and taxable at slab rate.

Capital gain shall be computed as under:

Sale Consideration
Less: Cost of acquisition

Cost of acquisition shall be the cost for which the gold was acquired by your mother-in-law.

If the gain is LTCG, then the cost of acquisition shall be indexed.