Sale of old gold
Stephen
(Querist) 03 November 2013
This query is : Resolved
Hi Experts in lawyer & taxation,
I am a retired person having annual income through other source around 5Lakh PA and recently my spouse sold some old gold for 1.3Lakh and obtained a cheque from the jeweller and I deposited in my a/c. Does this amount to be taxed. If yes under what category and what would be taxable slab would this fall including the above mentioned source of income and what will be tax payable along with any applicable exemptions.
Thanks in advance for your advice.
Anirudh
(Expert) 03 November 2013
The gain from sale of gold jewellery is taxable under Capital Gains. Depending uponthe period for which the gold jewellery was held by your wife (less than 3 years is short term capital gains and more than 3 years is long term capital gains) the same is taxable.
If it is a short term capital gain, then the same will get taxed at the normal slab rate applicable.
In case of long term capital gains, tax is leviable at 20% of the gain. For working out the capital gains, you have to first arrive at the indexed cost of acquisition of the gold jewellery.
Rajendra K Goyal
(Expert) 03 November 2013
If the gold was in the name of your wife and cheque was in her name she may be liable to pay capital gains tax. However, if she is not having another income source in that condition even if we take whole amount as income it would be below taxable income. She may show this amount to you as gift or loan. in that condition no tax on you also.
Stephen
(Querist) 13 January 2014
Hi,
gold was originally bought 4 years ago for 60,000 so would the long term capital gains tax liability would it for 1.3 Lakhs OR 70,000 gains i.e (1.3 – 60,000). Kindly clarify and also would I need to show any proof of receipts / bank cheque etc at the time of tax filing for the same.
