If you are going to buy new gold by selling old gold, know what are the income tax rules – India TV Hindi

Capital Gains Tax: We all sell our old jewelery and buy new designed jewellery. But very few people know that capital gains tax has to be paid when buying new jewelery by selling old jewellery. Selling old gold to buy new jewelery is seen as sale of old asset. Union Finance Minister Nirmala Sitharaman had announced changes in the rules related to capital gains in Budget 2024.

Capital gains tax will have to be paid at the rate of 12.5 percent

Under the new rules, if a person sells any non-financial asset more than two years after purchasing it, he has to pay capital gains tax at the rate of 12.5 percent without indexation. When a property is sold in less than two years, it is treated as short term capital gains and the profit is added to the total income to be taxed at the slab rate.

Can tax exemption be claimed

If you use the sale proceeds to buy a property, you can claim a deduction on income tax. According to tax expert CA Chirag Chauhan, under Section 54F, when the sale proceeds are used to buy a property, you can claim income tax exemption. But when gold or other precious metals are sold to buy a new asset, it is considered a new purchase and capital gains from the sale are taxed.

Understand tax calculation with example

For example, if you bought a gold chain two years ago, you sold it and earned a capital gain of Rs 50,000. You will have to pay Rs 6250 (12.5 x 50,000/100) on this capital gain. Along with this, you will also have to pay 4 percent cess (Rs 250) on it. In this way you will have to pay a total tax of Rs 6500. These new rules came into effect on July 23 with the introduction of the Finance Bill 2024.

Latest Business News