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Inheritance

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Suppose A person receives gold as a gift from his Father which is purchased before 1981 the cost derived by taking the reckoner rates of gold comes to about 121329 so the value of gift comes to about 121329 so i have the following querries on this case

1) Is This Gift Taxable? As it is from Blood Relative (Father)

2) If This gold received Would Be in the form Of Inheritance on Death And not gift then what would be the Tax Implication ?

3) Now the person who has received the gold as gift/inheritance is a person whose business is of Purchasing & Selling of gold ornaments Can he include this gold in his stock and if Yes at what value at the cost of 1981 as it is purchased prior to 1981.

I mean to ask that whether while selling the Gold In Open Market Will he Have to pay Long term capital gain on the Gain derived after deducting Indexed Cost

Replies (4)

GIFT IS TAXABLE ONLY IF IT IS GIVEN IN THE FORM OF MONEY U/S 56...........

 

UR QUERY SEEMS TO BE REGARDING WHETHER CAP. GAINS IS CHARGEABLE ON ANY SUCH TRANSFER.........

(1) Sec.47 exempts tranfer in the nature of gift

(2) Sec.47 exempts tranfer which is in the nature of inheritance.

(3) for this query, not sure...........

I mean to ask that whether while selling the Gold In Open Market Will he Have to pay Long term capital gain on the Gain derived after deducting Indexed Cost

 
I mean to ask whether while selling the gold he will have to pay long term capital gain with Indexation @ 20%

Can The Person Include the Gold Received in his stock

 

Yes Pranay, now i understood.......

 

The gold recieved as gift or inheritance can very well be taken as a stock of the business...........

Now, when the said stock is sold, since the transaction will certainly be related to business, no capital gain is attracted............

 

the income will be a usual business income as the assessee will be selling the stock as in normal course..........and for the purpose of this, the cost of this gold will be taken to be nil as the assesseee received it as a gift/inheritance.............NO CAPITAL GAIN CAN ARISE NEITHER TO THE TRANSFERER (WHO GIVEN GIFT/INHERITANCE) by virtue of Sec.47 and NOR TO THE TRANSFEREE AS THE ASSET RECIEVED IS STOCK AND HE WILL BE SELLING IT AS STOCK ONLY............THANX


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