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Income Tax

Antony (Manager) (61 Points)

07 July 2020

Sir,

I intended to sell gold worth above 10 lakhs.

Query 1. Whether I have to pay income tax for the income from the sale ?

Query 2. Whether the buyer deduct the tax at source and if, at what rate

Thanking you

Antony Kaitharath

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3 Replies

Sarthak Kumar Dash (Student) (232 Points)
Replied 07 July 2020

1- Yes, you're liable to pay tax on income from sale of jewellery under the head "Capital Gain".
If it is held for less than 36 months then short term cap gain that attract tax as per normal slab rate.
And if it is held for more than 36 months then its long term cap gain (ellgible for indexation benefit) that attract tax @ 20% (+cess)

2. No, there is no deduction of TDS in sale of gold. But if the sale is in CASH (value more than 2 Lakh) then 1% TCS need to be collected.

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 09 July 2020

No deduction of TDS in sale of gold.

Naveenkumar Ananthapadmanabhai (24 Points)
Replied 10 July 2020

Sir I have prepared my income tax return for AY 2019-20 after entering bsr code date of tax payment and tax amount I have been saved and clicked on submit button . But error message is coming as "other bank details invalid please enter valid IFS code " .what may be the problem and please suggest me the valuble reason and how to overcome this.