No tax implications for gifting gold cash

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I had invested in gold cash in 2010-11 at a suggest cost of 28,000-30,000. If I promote, will capital choices tax be associated, and at what cost? Will it’s associated if I present it to my household?

—Radhika

Because of the gold cash have been held for greater than 36 months, they may qualify as a long-term capital asset. The resultant buy/loss may very well be taxable as long-term capital choices/loss (LTCG/L) in your fingers.

LTCG/L is calculated because of the excellence between web sale consideration (the precise sale consideration quite a bit a lot much less incidental funds) and the listed price of acquisition (ICOA) and enchancment. The ICOA may very well be calculated as price of acquisition/price inflation index (CII) of FY2010-11 (i.e. 167) * CII of yr of sale.

The tax is payable at 20% (plus associated surcharge and cess) on the next LTCG.

A rollover exemption is likely to be sought in path of this LTCG beneath Half 54F of the Earnings Tax Act by trying to find or establishing a residential property, topic to the prescribed situations and timelines.

Transferring the gold cash through a present wouldn’t give rise to any tax implications in your fingers because of the donor. Additional, from the donee’s perspective, in case you occur to’re a specified relative, then the transaction of present wouldn’t give rise to any tax implications all through the fingers of the recipient as appropriately.

Additional, it might probably be advisable that any such present be documented in a licensed doc viz. a present deed and positioned all through the data. Nevertheless, it is worthwhile to go looking a licensed opinion on the appropriate documentation and stamp obligation implications (if any). The onus of proving that the swap of gold cash between you and your family members is a present/irrevocable swap may very well be on you and your relative and there have to be sturdy documentation to assist the declare.

I used to be employed in an Indian IT company from August 2010 to December 2020. My full tenure with the corporate was about nine-and-a-half years. Out of this, I used to be deputed overseas for six years. When overseas, my payroll modified to the abroad company and I used to be paid wage in overseas abroad money. I resigned from the abroad firm whereas overseas. I would like to grasp how gratuity works in my case. Am I eligible to get it based completely on my full comply with the corporate, or solely the Indian tenure is eligible?

—Amit Choudhary

As per the Value of Gratuity Act, 1972 (POGA), an worker who’s employed for wages in or in reference to an institution to which POGA applies and rendered common service for not lower than 5 years shall be eligible to accumulate gratuity.

Assuming that your Indian employer-employee relationship was terminated all by way of your abroad deputation and POGA is just not associated to the abroad company, the suppliers rendered by you abroad is likely to be not thought of for the intention of counting of normal service of 5 years for the intention of gratuity.

Nevertheless, the precise affiliation and phrases of your employment with the Indian/abroad company might need to be evaluated to additional contact upon the an similar.

Parizad Sirwalla is affiliate and head, worldwide mobility suppliers, tax, KPMG in India.

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