Gold has always been a treasured asset in india, often passed down from one generation to another. But if you inherit gold, do you need to pay tax on it? Here’s a breakdown in simple terms.
1. Inherited gold is not taxable as income
Good news! If you receive gold as an inheritance from your parents, grandparents, or any relative, it is not considered taxable income. That means you don’t have to pay income tax the moment you inherit it.
2. Gifted gold vs inherited gold
It’s important to differentiate between gold that’s inherited and gold that’s gifted. Gifts from relatives are usually exempt from tax, but gifts from non-relatives above ₹50,000 may attract tax. Inherited gold, however, always remains tax-free at the time of inheritance.
3. When tax comes into play: selling the inherited gold
The tax question arises when you decide to sell the inherited gold. The profit you earn is treated as a capital gain, and this is taxable under the income tax act.
Short-term capital gains (stcg): if you sell the gold within 36 months of inheritance, the gains are added to your income and taxed according to your income slab.
Long-term capital gains (ltcg): if you sell the gold after 36 months, the profit is considered long-term and taxed at 20% with indexation benefits.
4. Calculating the cost of inherited gold
To determine the taxable gain, you need the cost of acquisition. For inherited gold, the cost is considered the value at the time of inheritance. So, if your parent bought gold decades ago, your cost basis is the market value on the date you inherited it.
5. Keep records for smooth tax filing
Maintain proper documents, such as:
Will or legal proof of inheritance
Valuation certificate of the gold on the inheritance date
Receipts if you decide to sell it later
This ensures transparency and avoids unnecessary scrutiny from tax authorities.
6. Summary: enjoy your gold, but plan ahead
Inheritance itself: no tax
Selling within 36 months: taxable as short-term capital gain
Selling after 36 months: taxable as long-term capital gain (with indexation)
In short, inheriting gold is a financial blessing, but knowing the tax rules ensures you enjoy it without surprises.
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..jpg)
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