How Is Inherited Gold Taxed In India?

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    Different provisions of tax apply to gold of different forms as well as gold held through different means.

    How Is Inherited Gold Taxed In India?

    And in case the gold you own has been acquired as a gift the taxation criteria on it is dependent on two facets

    1. Value of the gold

    2. Individual's relation with you who is gifting you such gold in any of the form.

    1. Value of the gold: The gold that includes any gold jewellery becomes fully taxable at the time of receipt if the value of all the gift taken together exceeds Rs. 50,000 in value in a financial year. In case the same, if it is less in value then the above mentioned, the gift in entirety will attract no taxation implication.

    2. If the gold is received as gift from some close relative then no tax implications arise: In case the gold held by you is received as gift either in marriage or from some of your close relative that includes parents, spouse, parents of your spouse etc. such gold is not taxable in the hands of the holder.

    Similar is the case, when one is in possession of gold either by way of inheritance or as per some stated will, i.e. such gold value does not attracts any taxation liability.

    Nonetheless, it is to be noted that if your considering to sell such an held gold then capital gains implication arise and for the purpose holding period dates back to the time it was first owned by the previous owner who paid a financial consideration against it. And, in respect of the cost of acquisition, the value will be taken as the amount paid by the original or previous holder.

    Also, as per the taxation provision, in case you inherit the gold jewellery which was purchased by the original owner before April 1, 2001 then the fair market value as on April 1, 2001 will be the actual cost of acquisition.

    Goodreturns.in

    Read more about: gold capital gains indexation
    Story first published: Wednesday, July 4, 2018, 11:24 [IST]
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