Question regarding sale and possession of rough gem stones
shivaraman
(Querist) 04 July 2014
This query is : Resolved
I am having rough gem stones which I got from
my deceased ancestor,I do not have any documents regarding it. so what shall I do to legalise the possession and sale of gem stones?
P. Venu
(Expert) 04 July 2014
Why you presume that the possession is not legal?
Devajyoti Barman
(Expert) 05 July 2014
yes, why are you so suspicious?
Even people hardly keep receipts of their own ornaments.
T. Kalaiselvan, Advocate
(Expert) 06 July 2014
Until it is not a stolen property, you need not worry about its legal position while the same is in your possession and your intentions to transact with it.
Anirudh
(Expert) 06 July 2014
Dear Shivaraman,
If you will sell the gem stones in your possession, you will get the proceeds in Cheque.
Then you have to pay the capital gains tax. The question will first come whether it is Long term capital gain (when the gems were held for more than 36 months) or short term capital gain.
To claim as a Long Term Capital Gain, you have to successfully prove that you got it from your deceased ancestor.
Then you have to prove what was the value at the time of its purchase. Only after knowing the purchase price, the long term capital gain tax can be worked out.
If you can succeed in selling the gems for CASH (instead of cheque), you can escape from the above troubles. However, you should successfully manage the hard cash in your hands.
