No tax implications for gifting gold cash

I had invested in gold cash in 2010-11 at a mean fee of ₹28,000-30,000. If I promote, will capital features tax be relevant, and at what fee? Will or not it’s relevant if I present it to my household?

—Radhika

As the gold cash have been held for greater than 36 months, they may qualify as a long-term capital asset. The resultant achieve/loss could be taxable as long-term capital features/loss (LTCG/L) in your fingers.

LTCG/L is calculated because the distinction between internet sale consideration (the precise sale consideration much less incidental bills) and the listed price of acquisition (ICOA) and enchancment. The ICOA could be calculated as price of acquisition/price inflation index (CII) of FY2010-11 (i.e. 167) * CII of 12 months of sale.

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

A rollover exemption might be sought towards this LTCG underneath Section 54F of the Income Tax Act by shopping for or constructing a residential property, topic to the prescribed circumstances and timelines.

Transferring the gold cash by the use of a present wouldn’t give rise to any tax implications in your fingers because the donor. Further, from the donee’s perspective, in case you are a specified relative, then the transaction of present wouldn’t give rise to any tax implications within the fingers of the recipient as nicely.

Further, it could be advisable that any such present be documented in a authorized doc viz. a present deed and positioned within the data. However, you must search a authorized opinion on the suitable documentation and stamp obligation implications (if any). The onus of proving that the switch of gold cash between you and your family members is a present/irrevocable switch could be on you and your relative and there needs to be sturdy documentation to assist the declare.

I used to be employed in an Indian IT firm from August 2010 to December 2020. My whole tenure with the corporate was about nine-and-a-half years. Out of this, I used to be deputed overseas for six years. When overseas, my payroll modified to the abroad firm and I used to be paid wage in overseas forex. I resigned from the abroad agency whereas overseas. I want to know the way gratuity works in my case. Am I eligible to get it based mostly on my whole stick with the corporate, or solely the Indian tenure is eligible?

—Amit Choudhary

As per the Payment of Gratuity Act, 1972 (POGA), an worker who’s employed for wages in or in reference to an institution to which POGA applies and rendered steady service for not lower than 5 years shall be eligible to obtain gratuity.

Assuming that your Indian employer-employee relationship was terminated throughout your abroad deputation and POGA shouldn’t be relevant to the abroad firm, the providers rendered by you abroad will not be thought-about for the aim of counting of steady service of 5 years for the aim of gratuity.

However, the precise association and phrases of your employment with the Indian/abroad firm could have to be evaluated to additional touch upon the identical.

Parizad Sirwalla is companion and head, international mobility providers, tax, KPMG in India.

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