If I sell ancestral jewellery(passed on from generations), what will be the tax implication. SInce the period of holding is >3 years, it shall be Long Term Capital Gain. But what about the cost of acquisition? No purchase bill is available.
3 Replies
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 23 June 2012
LTCG Shall be chargeable...
Since cost to previous owner is not available, FMV as on 01.04.1981 shall be taken as the COA.
For Calculating FMV, apply the following formula
FMV as on 1.4.81 = Quantity of Jewellery in grams * Market price per gram as on 1.4.81
yashsr
(CA)
(2285 Points)
Replied 23 June 2012
| Originally posted by : Rupesh Kalantri | ||
 |
LTCG Shall be chargeable... Since cost to previous owner is not available, FMV as on 01.04.1981 shall be taken as the COA. For Calculating FMV, apply the following formula FMV as on 1.4.81 = Quantity of Jewellery in grams * Market price per gram as on 1.4.81 |
 |
Thanks! And where can I find market price per gram as on 1.4.81?
KRISHNAPRASAD IYER
(B.Com , CA Final)
(657 Points)
Replied 23 June 2012
| Originally posted by : Rupesh Kalantri | ||
|
|
LTCG Shall be chargeable... Since cost to previous owner is not available, FMV as on 01.04.1981 shall be taken as the COA. For Calculating FMV, apply the following formula FMV as on 1.4.81 = Quantity of Jewellery in grams * Market price per gram as on 1.4.81 |
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