Gold & Silver Rates for the Income Tax purposes
Introduction:
Do you know that the sale of gold & silver is taxable as per the Income Tax Law in India? Capital Gain Tax provisions under the Income Tax Act, 1961 prescribe that any gain on the sale of gold, silver, or jewellery, etc. shall be liable for tax either as “Long Term Capital Gain” or “Short Term Capital Gain”. For being classified as “Long Term Capital Gain”, a minimum holding period of 3 years is mandatory. It means that if you hold gold/silver/jewellery for more than 3 years, any gain on the sale thereof shall be treated as “Long Term Capital Gain” and will be eligible for indexation benefits as per the Income Tax law.
For calculation of long-term capital gains on gold/ silver, you need to know the “cost of acquisition” but in general, the Indians inherit gold & silver from their elders for which the exact cost is not known sometimes. Due to this, it becomes difficult to make a proper calculation of the capital gain amount. Further, sometimes the Assessing Officer disputes the fair value of gold declared by the assessee in his/her income tax return filing. Therefore, it becomes important for you to know about the valuation of gold & silver as prescribed by the Income Tax Department from time to time. This article provides you the gold rates (24 carats 10 gms.) & Silver rates (9960 touch- per kg) as of 01-04-1981 and for every year 31st March starting from the year 2009 to 2022.
|
Date of Valuation |
Assessment Year |
Gold Rates (Standard 24 Carats)- per 10 Gms. |
Silver Rates (9960 touch)- per kg. |
|
01-04-1981 |
1981-82 |
1670 |
2715 |
|
31-03-2009 |
2009-10 |
15,105 |
22,165 |
|
31-03-2010 |
2010-11 |
16,320 |
27,255 |
|
31-03-2011 |
2011-12 |
20,775 |
56,900 |
|
31-03-2012 |
2012-13 |
28,040 |
56,290 |
|
31-03-2013 |
2013-14 |
29,610 |
54,030 |
|
31-03-2014 |
2014-15 |
28,470 |
43,070 |
|
31-03-2015 |
2015-16 |
26,245 |
37,825 |
|
31-03-2016 |
2016-17 |
28,340 |
36,990 |
|
31-03-2017 |
2017-18 |
28,950 |
42,000 |
|
31-03-2018 |
2018-19 |
30,680 |
38,355 |
|
31-03-2019 |
2019-20 |
31,640 |
37,245 |
|
31-03-2020 |
2020-21 |
43,000 |
39,200 |
|
31-03-2021 |
2021-22 |
44,013 |
62,862 |
|
31-03-2022 |
2022-23 |
51,484 |
66,990 |
Note:
The value of Gold contained in gold ornaments should be reduced by 14 to 20 percent of the ruling rates of standard gold, as per the practice prevalent in the bullion market and the amount of reduction has to be worked out in the following manner:
|
|
Plain Gold Bangles & Ornaments made of solid gold |
Other Gold Ornaments |
|
The difference in value between 24 carats of standard gold and 22 carats of gold ornaments (gold ornaments are generally made of 22 carats of gold) |
8.33% |
8.33% |
|
Soldering made of copper, silver, etc. used in making ornaments |
2.5% to 5% |
8.33% |
|
Shortage of gold in melting, mint charges payable to the Government, expenditure on freight, insurance etc. of sending gold ornaments to the approved mint for conversion into standard gold bars |
1.25% |
1.25% |
|
The margin of profit of the dealer when ornaments are sold in the market |
2% |
2% |
|
Total Reduction |
14.08% to 16.58% |
19.91% |
Conversion Table:
- 10 Grams = 0.857 Tola or 1 Tola = 11.664 Grams
- 1 Kilogram = 85.734 Tolas
- 10 Tolas = 116.638 Grams
Source: The above article is based upon the rates of Gold & Silver as published by the Income Tax Department and the same is also available on the Income Tax Portal of the Department.
For any query or assistance, you may get in touch at: 9660930417
