Sale of jewellery of marriage (tax planning)
My aunt did expired and now the jewellery (from marriage 1967) needs to be sold off.
How tax liability can be avoided or reduced ? She used to file return within exemption limit.
Asked 3 years ago in Income Tax from Delhi, Delhi
In the present case you need to declare capital gains tax arrived after indexation as provided in The Income tax Act in case of sale of jewellery . Incase of further calculation please provide details on email@example.com
Thanks so much Sir, But the point is that indexing from 1981 the capital gain will be almost 80% of the sale price. Can't we say gold is purchased recently from the last income of 5-7 years and avoid capital gains.
Is reinvestment option available in this case u/s 54?
Asked 3 years ago
Yes reinvestment option is available U/s.54 in case of sale of capital asset. The purchase of gold recently or otherwie will depend on the proofs you provide.
What is the evidence for purchase of jewelry and source of investment 5 or 7 years back.
Investment option u/s 54F is available.
You can invest in amount in a residential property or in NHAI bonds or construction of a residential property.
Your Aunt has expired. How many legal heirs she has? If she has more than one legal heir, the answer would be different and tax planning would also be different.