Expert advice needed plz

YES THERE WOULD BE A CAPITAL GAIN. I HAVE RECENTLY DONE THIS TYPE OF CALCULATION.

THE COST WOULD BE 1700 RS. PER 10 GRAM ( AS MENTIONED IN WEALTH TAX RATES OF 1981-82)

AND INDEXING WOULD BE DONE ACCORDING TO RATES OF CAPITAL GAIN INDEX. RECTIFY ME IF I AM WRONG 

Hi , yes gold is definitely covered u/s 2(14) , that is definition of capital asset and sale is transfer by virtue of section 2(47) , so 100% there will arise a capital gain for which you will be sujected to . 

However since it is the case of long term capital gain you by virtue of  proviso to section 48 you will be allowed to have benefit of  indexation from 1981 till the date of transfer . plz confirm the gold rates as on

1- 4-1981 and get it indexed till date of transfer . that will be your cost  of aquistion and subtract it from your sale value and the resultant figure will be your capital gain .

TAX PLANNING :  For avoidance of tax only remedy available is section 54F and section 54EC . Go through it and see whether you satisfy the conditons specified in its proviso.

Originally posted by : SHASHANK GOYAL
	Hi , yes gold is definitely covered u/s 2(14) , that is definition of capital asset and sale is transfer by virtue of section 2(47) , so 100% there will arise a capital gain for which you will be sujected to .  However since it is the case of long term capital gain you by virtue of  proviso to section 48 you will be allowed to have benefit of  indexation from 1981 till the date of transfer . plz confirm the gold rates as on 1- 4-1981 and get it indexed till date of transfer . that will be your cost  of aquistion and subtract it from your sale value and the resultant figure will be your capital gain . TAX PLANNING :  For avoidance of tax only remedy available is section 54F and section 54EC . Go through it and see whether you satisfy the conditons specified in its proviso.

agree