Gold valuation

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Anand Modi (Querist)
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21 January 2012 Dear Sir,
I want to know the calculation of Capital gain in case of gold is sold which was purchased in marraige of my grand mother i.e. before 01.04.1981.

Please give an example asap.

Thanks and Regards

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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21 January 2012 Sale Consideration Less Indexed Cost of Acquisition of Gold, Since it is purchased before 01.04.1981 so either actual cost on the date of purchase or FMV as on 01.04.1981 can be considered

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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21 January 2012 To add:

Example

Total Sale Consideration: 1000000
Less: Expenses on transfer: 10000
Less: Indexed Cost of Acquisition:

Actual Cost 50000
FMV on 01.04.1981 75000
Higher(more beneficial) 75000
CII 1981-82: 100, 2011-12: 785

75000*785/100= 588750

Long term Capital Gain: 401250

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