Hi I have sold ancestral gold and received an amount of Rs. 10 lakhs. I learned that a tax rate of 12.5% is applicable on long term capital gains (LTCG). But I do not know the purchase price since the gold is inherited. How does one compute the purchase price in such cases ?.
Hey @radhesh23k,
The tax rate on long-term capital gains from gold is 12.5%.
Since the gold is inherited, you don’t take the cost as zero. You use the original purchase cost of the previous owner. If that is not available and the gold was acquired before April 1, 2001, you can take the fair market value as on April 1, 2001 as the cost.
So, your capital gain will be the difference between the sale price (₹10 lakh) and this cost.
Hope this helps!