Like other capital assets, jewellery is also classified under the category and any capital gains made on its sale arises taxation liability even if it was gifted to you by some of your relative. It is to be remembered as well as to note that for the purpose of computation of tax liability on such gains, the holding period of the relative who has gifted you the asset is also accounted for.
This said it means the period of holding in respect of the sold jewellery by your relative shall be added to the period for which you held the asset and if it is more than 36 months or 3 years than taxation @ 20 together with cess and surcharge will apply.
In respect of the cost of acquisition, the cost which your relative paid will be the cost for you and the full value of consideration less this value will mean the gains for you.
LTCG on jewellery sale
If sale is made after three years of holding the asset then long term capital gains tax @ 20% together with applicable cesss and surcharge will apply. On the cost of acquisition, indexation benefit will be provided.
It is to be noted in case the cost of acquisition for your relative was before April, 2001 then fair market value as on April 1, 2001 can be accounted as the cost of acquisition for the purpose of calculating tax liability. And the inflation impact can be then accounted for with the help of cost of inflation index for both the purchase and sale year.
Also, remember to get the receipts of the jewellery obtained as gift document by you as without it you shall not be claim the deduction in respect of the cost of acquisition then.