Tax implication on sale of gold

As per Section 43 of Income Tax Act,1961- "Cost of Purchase of Asset", in case of Gift ,, is the Cost of purchase in the Hands of Gifted Person.

You got Jewellary as Gift, so the Cost of Purchase of Gifted Person shall be cost of Purchase to You.

If you Sell, You have to Pay Capital Gains,, Whether Long term Capital Gains or Short term Capital Gains, Depending on Period of Holding of Such Gold In Your Hands.

Refer 'section Analysis' of Section 48 on this Link, to Know How to Caluclate the Capital Gains Tax Link:https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-48

Any proof of gold jewellery received as gift. Does the donor has purchase receipts and can he confirm that jewellery was indeed given by him as gift.

This is common problem of all marriage gifts. Records are not maintained and despite all provisions of law, benefits are denied.

So technically, what Mr Sreekanth has posted is correct but practically any sale proceeds will be treated as your taxable income unless you prove what I have stated in first para.

So suggest, take PAN, start filing wealth tax return, keep on adding small jewellery every year for wealth tax valuation and once, everything is on record, sale procceds will be taxed as capital gains. Since you do not have any other  income, the capital gains may not be taxable at all.

YOUR QUERY: I am having some 800 gms of gold jewellery which i got at the time of my marriage in 2009.

I am not working and not a tax payee and my husband is an NRI.

I would like to know the tax implications on selling this

REPLY:You claim that you had received the gold jewellery at the time of your marriage  which, you further claim, was in 2009. For these you will have to adduce the best possible convincing evidence.

As you held the jewellery for more than 36 months, if you sell now it would give rise to only income from  'Long Term Capital Gains'.

From the sale proceeds you will be eligible to deduct the indexed cost of acquisition' ie; the fair market value of the jewellery on the date of the marriage, adjusted to the Cost Inflation Index -see Explanation (iii) to Section 48 in the Income tax Act 1961.