No tax implications for gifting gold money

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I had invested in gold money in 2010-11 at a recommend price of 28,000-30,000. If I promote, will capital selections tax be related, and at what price? Will it is related if I current it to my family?

—Radhika

Due to the gold money have been held for higher than 36 months, they might qualify as a long-term capital asset. The resultant purchase/loss could very properly be taxable as long-term capital selections/loss (LTCG/L) in your fingers.

LTCG/L is calculated due to the excellence between internet sale consideration (the exact sale consideration fairly a bit rather a lot a lot much less incidental funds) and the listed value of acquisition (ICOA) and enchancment. The ICOA could very properly be calculated as value of acquisition/value inflation index (CII) of FY2010-11 (i.e. 167) * CII of yr of sale.

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

A rollover exemption is more likely to be sought in path of this LTCG beneath Half 54F of the Earnings Tax Act by looking for or establishing a residential property, matter to the prescribed conditions and timelines.

Transferring the gold money by way of a gift would not give rise to any tax implications in your fingers due to the donor. Extra, from the donee’s perspective, in case you happen to’re a specified relative, then the transaction of current would not give rise to any tax implications all by way of the fingers of the recipient as appropriately.

Extra, it’d in all probability be advisable that any such current be documented in a licensed doc viz. a gift deed and positioned all by way of the information. Nonetheless, it’s worthwhile to go searching a licensed opinion on the suitable documentation and stamp obligation implications (if any). The onus of proving that the swap of gold money between you and your loved ones members is a gift/irrevocable swap could very properly be on you and your relative and there must be sturdy documentation to help the declare.

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

—Amit Choudhary

As per the Worth of Gratuity Act, 1972 (POGA), an employee who’s employed for wages in or in reference to an establishment to which POGA applies and rendered frequent service for not decrease than 5 years shall be eligible to build up gratuity.

Assuming that your Indian employer-employee relationship was terminated all by means of your overseas deputation and POGA is simply not related to the overseas firm, the suppliers rendered by you overseas is more likely to be not considered for the intention of counting of regular service of 5 years for the intention of gratuity.

Nonetheless, the exact affiliation and phrases of your employment with the Indian/overseas firm may must be evaluated to further contact upon the an related.

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

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