Many people get gold as an inheritance from their parents, grandparents, etc. If you have also got gold as an inheritance, then you should know some things about taxes. You should also know whether income tax is levied on such gold or not. Let us tell you that this time the last date for filing income tax is 15 September.

According to Indian tax law, inherited gold is not considered taxable income. Therefore, you will not have to pay income tax just by getting gold. But if you decide to sell that gold, the rules change. In that case, you will have to pay capital gains tax. This tax will not be levied on the value of the entire gold, but on the profit from the sale.

How is tax calculated?

When selling inherited gold, tax is calculated keeping in mind the indexed cost of acquisition. Indexed cost of acquisition means that the cost is adjusted keeping in mind inflation. The cost inflation index is used for this. According to experts, this reduces the tax burden.

Two important aspects are considered for calculating capital gains on inherited gold: the cost of acquisition and the holding period. The cost of acquisition is considered to be the amount at which the previous owner originally purchased the gold. If you have received that gold before 1 April 2001 and do not know how much it was purchased for, then its price can be considered as the price of gold on 1 April 2001.

How much tax will have to be paid on profit?

The profit made on selling gold is subject to capital gains tax. It is of two types. The first is short-term capital gains (STCG), and the second is long-term capital gains (LTCG). If you sell gold within 24 months, then you will have to pay short-term capital gains tax. This tax will be levied according to your income tax slab. If you sell gold after 24 months, you will have to pay Long-Term Capital Gains Tax, which will be 12.5%.

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