Many people wonder if it’s legal to sell inherited gold jewellery. The short answer is yes, but there are important tax implications and legal considerations to keep in mind.

1. Legal Right to Sell Inherited Gold

· As a heir, you have full ownership of the jewellery inherited from your mother

· You can sell it to jewellers, pawnshops, or private buyers

· No law prevents heirs from monetizing inherited assets

Ownership rights transfer automatically after inheritance or as per a will or succession certificate.

2. capital Gains Tax Comes Into Play

· Selling inherited gold is considered a capital asset transaction under the Income Tax Act

· Long-Term capital Gains (LTCG): Applicable if the gold is held for more than 36 months

· Taxable Amount: Sale price minus indexed cost of acquisition (value at the time your mother originally acquired it, adjusted for inflation)

LTCG on inherited gold is usually taxed at 20% with indexation.

3. Documentation You May Need

· Proof of inheritance: Will, legal heir certificate, or succession certificate

· Purchase receipts or valuation documents if available (helps in tax calculation)

· PAN details for high-value transactions

Proper documentation ensures smooth transactions and tax compliance.

4. Tips to Minimize Tax Burden

· Keep records of your mother’s purchase date and price if available

· Consider gold valuation at the time of inheritance

· Sell through registered jewellers or auction houses to maintain transparency

· Explore gold bonds or other investment options to defer taxes if needed

5. Other Considerations

· Selling large amounts of gold may attract scrutiny from tax authorities, so maintain proper paperwork

· Avoid informal deals; always request a receipt

· Some states may have local regulations or duties—check before selling

6. Final Takeaway

Yes, you can legally sell gold jewellery inherited from your mother, but capital gains tax rules apply. Proper documentation, careful valuation, and selling through formal channels help you avoid legal trouble and minimize taxes.


Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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G GOWTHAM

29/11/2025 06:05 AM