You can declare a tax exemption on long run capital beneficial properties from the sale of gold property beneath Section 54F of the IT Act, 1961. Section 54F gives an revenue tax exemption on capital beneficial properties earned from promoting capital property similar to shares, gold, bonds and so on., apart from a home property.
If you promote gold and reinvest the complete sale proceeds in direction of buying or setting up a home property, the capital beneficial properties you earn are allowed as a tax exemption beneath Section 54F.
For instance, in the event you had bought bodily gold for ₹6 Lakh in FY 2012-13 and offered it for ₹10 Lakh in FY 2018-19, your long run capital beneficial properties are ₹1.6 Lakh (after indexation). If you make investments the complete sale proceeds of ₹10 Lakh from gold in a home property, the capital achieve of ₹1.6 Lakh won’t be taxed in your fingers.
However, you must use the sale proceeds from gold within the following method to say this tax exemption:
You must buy a brand new residential property one yr earlier than the sale of the capital asset. ORYou must buy residential property inside two years from the sale of the capital asset. ORYou must assemble a residential property inside three years from the date of sale of the capital asset.
Suppose you’re unable to utilise the complete quantity of the sale proceeds to buy/assemble a brand new residential home property earlier than the ITR submitting due date. In such instances, you may deposit the gross sales proceeds from gold in a Capital Gains Account with a public sector financial institution. You can use this quantity to buy/assemble a brand new residential home property inside the requisite timelines.
Archit Gupta is the Founder and CEO of Clear
Subscribe to Mint Newsletters
* Enter a legitimate electronic mail
* Thank you for subscribing to our publication.
