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Capital gain

Aditi (Job) (205 Points)

06 May 2016

my client hs sold gold jewelry wich was inherited to him cz of sisters death so cost of acquistion vl b takn as dat of sis ya wn he recvd gold dt day computation vl be taken fr ltcg?

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3 Replies

anonymous (student) (750 Points)
Replied 07 May 2016

sister's valuation of gold will be your COA

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Aditi (Job) (205 Points)
Replied 07 May 2016

bt even sister hs also recvd from mother on her death dn lso coa vil be of sister?

anonymous (student) (750 Points)
Replied 07 May 2016

Jewellery qualifies to be a capital asset according to the tax laws in India. Any income arising from its sale will be taxed as capital gains.
In view of the fact that the capital asset is held for more than 36 months, the gain from its sale would be taxable as long term capital gains and benefit of indexation will be available.
The amount received on sale of jewellery is regarded as full value of consideration in order to compute the capital gains. Fair Market Value of jewellery as on April 1,1981 can be considered as the cost of acquisition of the assessee since the asset was acquired prior to April 1,1981. There are authorised valuers who can assist in calculating this value.
Capital gains so computed may be claimed as exempt in case it is invested in accordance with the terms and conditions as specified under section 54EC (i.e. the gain is invested in the long term specified asset) or/and section 54F (i.e. purchase/construction of residential house) etc. of the I-T Act, 1961.