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Capital gain on gold

Dwarkadas Madanlal Kabra (MD) (30 Points)

05 May 2017

How to Calculate Capital gain tax on Sales of Gold, what is the formula. and where it is available on net.

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3 Replies

Dwarkadas Madanlal Kabra (MD) (30 Points)
Replied 05 May 2017

Example: I am a bussiness women. I want to sale my Streedhan (Gold). After that i want to use that cash in my bussiness as my capital. can I do this. If Yes Capital gain tax is applicable on transaction. If Yes then how to calulate this capital gain on sale of gold. what is the formula to calulate.

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 05 May 2017

presume gpld is long term held for more than 36 months from the sale consideration you have to deduct indexed cost of acquistion for that you need to know that cost

the formula is sale consideration*CII in the year of transfer/CII in the year of purchase

CII -Cost Inflation Index

rama krishnan (12244 Points)
Replied 06 May 2017

for example if your cost of acquisition(coa) is 1 lakhs during the year 87-88 (cii - 150) and you sold that during 16-17 (cii - 1125) for 25 lakhs . then your indexed cost of acquisition is (100000 *1125)/150 = 750000 and your capital gain will be 25 lakhs minus 7.5 lakhs = 17.5 lakhs