Jewelry inheritance

Hi

Gift from inheritance is not taxable. Keep the will for documentation. 

You would be liable to pay capital gain taxes when the jewelry is sold.

Dear taxpayer,

Sorry to hear about your loss.

Regarding your query, the jewellery has now become a capital asset in your hands. Since you have received it by way of inheritance from your mother, the same will not be taxable at this point of time. However if you sell it off in future, the sale consideration will be chargeable to capital gains tax after taking deduction for its cost of acquisition i.e FMV as on Apr 2001. 

If suitably planned or structured, you can avail complete exemption from given tax as per the law.

Second, since you aren't required to file ITR in India, you don't need to report it anywhere as of now. But do keep the will for documentation purpose.

Hope it answers your query.

In case you have further questions related to this, feel free to reach out through telephonic mode for detailed discussion.

Best Regards 

Dear Sir,

Hope you are doing well !!

-Gift from inheritance is not taxable in India.

-No, you are not required to report the same in ITR.

-You will be liable to pay capital gain taxes on  sales of jewellery in future.

We may assist you in entire procedure.

It is advisable to take a phone consultation for detailed discussion.

Hi

There is no tax in case you inherit gold or receive gold as a gift from blood relatives, but when you sell it, you are liable to pay capital gains tax in case of profits. In case you have inherited gold jewellery, you are not required to disclose the same in your income tax return

- Jewellery is a capital asset and chargeable to Income tax in India at the time of sale of jewellery.

- In your case, it is a case of transfer of capital assets by way of will. Transfer of capital assets by way of will does not constitute transfer (i.e. Sale). Capital gain will be taxable at the time of actual sale by beneficiary.

- If you are an NRI then only Indian income is taxable in India. As jewellery is acceptable globally, if you sell it outside India then it will not be taxable in India being NRI. If you will sell it in India then as per Income tax rules, long term capital gain @20% (plus surcharge plus cess) will be chargeable. In case of will, cost of acquisition is cost to the previous owner (i.e. cost to your grandma). As per income tax rules, in cases where capital assets acquired before 01.04.2001, cost of acquisition would be actual cost of acquisition or FMV (Fair Market Value) whichever is higher can be considered by the beneficiary. To determine FMV, it is advisable to obtain valuation report as on 01.04.2001. 

- I advise you to show the amount of jewellery acquired through will in the ITR as the amount is huge for reporting purpose. Retain the original copy of will. It will be useful not only under Income Tax Act but also under Benami Transactions (Prohibition) Act. Under Income Tax Act, Married lady can only hold 500 gms of jewellery an unmarried lady 250 gms. 

For detailed discussion, you may have a phone consultation.

Hi.
Thanks for asking.

You do not need to report anything currently. However, if you sell any jewelry, you have to pay capital gains tax on the sale.