Sohil (Learner) (631 Points)
18 January 2011From last year i started filing return for my mother.
I added gold jewelery worth rupee 8 lakh as assets.Though we dont have that much jewelery plus have hardly any authenticate receipts of gold jewelery as they were passed as legacy.
1::Do every year we have to revaluate the value of gold.As we know price appreciate.In case of silver it has almost doubled in a year.
Ill ask more questions as the answer of this question will clear my fact about treatment of other queries.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 18 January 2011
assets in personal balance sheet of individual are capital assets unless they are specified as "stock in trade" and are valued at cost.
as i presume that your mother is senior citizen that means 8 lacs valuation accumulated in her life time at various rates, and present value may go in multiple folds,
there is no need to re-value the gold at present date, unless its catagorized in stock in trade.
Sohil
(Learner)
(631 Points)
Replied 19 January 2011
Thanks yes its personal asset .Not part of trade.
Now coming to question two.
Now though in balancesheet the value is 8 lakhs.Say presently if i revaluate it the price comes say 35 lakhs.Now suppose i sell 5 lakh worth of gold i sell .Than my present holding will be worth 30 lakhs.
But if i take cheque worth of 5 lakhs my 8 lakh on balancesheet will fall upto 3 lakhs.
Is that the only way it will work.Or i its compulsory to have the documents of that 8 lakh worth of gold?
I mean technically ill fall under wrong side of law because of the treatment.
Sohil
(Learner)
(631 Points)
Replied 20 January 2011
Anyone...please shed some more light on this topic.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 January 2011
| Originally posted by : Magnet | ||
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Thanks yes its personal asset .Not part of trade. Now coming to question two. Now though in balancesheet the value is 8 lakhs.Say presently if i revaluate it the price comes say 35 lakhs.Now suppose i sell 5 lakh worth of gold i sell .Than my present holding will be worth 30 lakhs. But if i take cheque worth of 5 lakhs my 8 lakh on balancesheet will fall upto 3 lakhs. Is that the only way it will work.Or i its compulsory to have the documents of that 8 lakh worth of gold? I mean technically ill fall under wrong side of law because of the treatment. |
 |
if u sell gold at cmp for 5 lacs means it was bought @ 1.25 lacs , so your net asset would get reduced by 1.25 lacs , and LTCG would arise 5 lacs minus 1.25 = 3.75 lacs with index benefit in hand and capital gain tax.
Sohil
(Learner)
(631 Points)
Replied 20 January 2011
SOrry did not got from where the 1.25 lakh figure comes?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 January 2011
Now though in balancesheet the value is 8 lakhs.Say presently if i revaluate it the price comes say 35 lakhs.Now suppose i sell 5 lakh worth of gold i sell .Than my present holding will be worth 30 lakhs.
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your statement confirms the value 4 times+ of cost ............ so 1.25 approx comes for 5 .00
as u said 8 is now 35 ...so 1.2 or 1.25 would be 5 in that proportion.
Sohil
(Learner)
(631 Points)
Replied 20 January 2011
Hmmm .Just this mere fact is enough for it balancesheet or this will lead to scrutiny.
Also can i save this capital gain by investing to whole amount into bonds like we can do for home?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 January 2011
u have to obtain gold sale vouchers from gold shops, and try to get payment by cheque.
for old records u have to maintain a "block of years" wise inventory with approx valuation of that period, in rationatization of weight and value ratio for 8 lacs.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 21 January 2011
if u r afraid of scurtiny then submit 3-4 years returns to ensure the capital gains are long term, ( 3 years from the date of submission of 1st return),
CAclubindia
