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When You Have To Disclose Inherited Gold In Your ITR?

In most Indian households, gold jewellery is the most traditional type in which gold is carried. Gold jewellery is most likely to be carried on to future generations, and it is commonly used on specific celebrations for gifting purposes. If you inherit gold or receive gold as a gift from family relations, there is no penalty, but when you market it, you are eligible to pay tax on capital gains in the case of income. You shall not be allowed to report the same in your income tax return if you have inherited gold jewellery. But if your yearly salary is more than Rs 50 lakh, while filing income tax returns, you are mandated to report your assets, which include gold holdings comprising jewellery and liabilities. Like jewellery, coins, and bars, among others, gold can be kept in physical form. The yellow metal is a financial instrument, so any capital income you make you need to pay tax on it. 

Short-term capital gain: Unless you sell gold within 36 months (3 years) of the date of acquisition, the profits will be subject to STCG taxation. Your gross total income will be added to these earnings and charged as per your tax slab.

Long-term capital gain: If the time between the acquisition of gold and the sale is more than 36 months, the income derived from the sale will be categorized as long-term capital gains. The long-term capital benefit from the selling of gold assets bears a 20 percent tax rate along with the related surcharge and cessation of schooling. The profits gained under LTCG are taxed under a different heading for long-term capital gains and are liable for the gold asset acquisition cost indexation gain. By reducing those indexed costs from the realized net sale price, the long-term capital gain is calculated. It is worth remembering that you should reveal the price paid by the original buyer in the case of inherited gold. If you do not have the specifics of the initial price paid, you will, as of 1 April 2001, report the fair market value. If the receipts are not obtained, you will have to procure the valuation as at the date of acquisition by the transferor or 1 April 2001, whichever is later, from the income tax-registered buyer.



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