Hi sir. I am a 76 year old muslim widowed lady. I hav 1250 grams of gold jewellry but hav no proof of purchase. I got some of this gold from my parents when i married and some from my husband and some as gifts during my lifetime. I want to sell this gold and receive the amount in my bank AC thru RTGS. I want to give this amount to my grandson in his AC to buy a house for himself. Will i have to pay any tax on it. My son is also alive .

Ans: Selling Gold Jewellery: Tax Implications and Considerations
As a 76-year-old widowed lady, planning to sell gold jewellery totaling 1250 grams without proof of purchase, you have several considerations to make. Your intention to transfer the proceeds to your grandson for purchasing a house raises questions regarding tax implications and legalities. Let’s delve into the details.

Selling Gold Jewellery Without Proof of Purchase
Selling gold jewellery without proof of purchase may present challenges, especially concerning taxation. Without invoices or bills, establishing the source of the gold becomes difficult. However, considering the jewellery's sentimental value and the circumstances surrounding its acquisition, there might be ways to navigate this situation.

Tax Implications
As per Indian tax laws, the sale of gold jewellery is subject to capital gains tax. However, exemptions exist for inherited assets and gifts from relatives, including parents and spouses. Since you acquired some of the gold from your parents and husband, and received some as gifts during your lifetime, these acquisitions might qualify for exemption from capital gains tax.

Transfer of Proceeds to Grandson
Transferring the sale proceeds to your grandson's bank account for purchasing a house is a generous gesture. However, this transaction might trigger tax implications, particularly regarding gift tax.

Gift Tax Considerations
Under Indian tax laws, gifts received from specified relatives, including grandparents to grandchildren, are exempt from gift tax. Hence, if you transfer the sale proceeds to your grandson, it should not attract gift tax, provided the amount does not exceed the specified threshold.

Involvement of Son
The presence of your son may influence the tax implications and legalities of the transaction. Since your son is alive, his involvement in the transfer of proceeds to your grandson may affect tax planning strategies. Consulting with a tax advisor or Certified Financial Planner (CFP) would be prudent to ensure compliance with tax laws and explore tax-efficient options.

Conclusion
In summary, selling gold jewellery without proof of purchase and transferring the proceeds to your grandson for purchasing a house involves tax implications and legal considerations. While the sale proceeds may be exempt from capital gains tax due to the jewellery's inherited and gifted nature, transferring the amount to your grandson requires careful planning to avoid gift tax implications. Involving your son in the decision-making process and seeking professional advice from a tax advisor or CFP can help ensure a smooth and tax-efficient transaction.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in