Speaking on the income tax rule applicable to the capital gain after sale of jewelry, Pankaj Mathpal, founder and CEO of Optima Money Managers said: “If the vesting period does not exceed 36 months , the short-term capital gain will be applied to the sale of jewelry. However, in the case of an acquisition of jewelry over 36 months, a long-term capital gain will be applied.

Pankaj Mathpal of Optima Managers said that if there is a long-term capital gain on the sale of jewelry, an indexation benefit can be obtained and the tax payable will be 20.8 percent (20 percent income tax plus 4 per cent of cess payable on net income). However, in the case of a short-term capital gain, the net income from the sale of jewelry will be added to its regular income and income tax will become payable depending on the income tax bracket in which it falls. find the individual.

On how the acquisition cost will be decided if the jewelry sold has been donated or inherited and the owner is unable to produce their original invoice, Balwant Jain, a tax and investment expert based at Mumbai, said: “In case of gift or inheritance of jewelry, the owner can claim its acquisition cost according to its price as of April 1, 2001. One can make his valuation by consulting a jewelry expert recognized by the government. “