Tax implication on sale of gold

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2013 My client has purchases gold in the year 2001 at Rs.2,20,000/-.Now he is selling the same at Rs.6,00,000/-in the year 2013.What is the tax implication
Pleas advice me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 November 2013 Your client will be liable to Long Term Capital Gains Tax. However if Capital gains are invested in Capital Gains Bonds (3Yrs),
he may get exemption U/s 54EC.
.
LTCG can be computed by deducting the Indexed cost of acquisition from the sales consideration.
.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 November 2013 you will have a capital gain tax of around Rs 23000. you may claim exemption as prescribed by Bafna ji or simply pay of taxes and utilize the remaining money to invest in other assets with better return.

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