Last Updated:August 30, 2025, 11:31 IST

Selling inherited gold? You might owe capital gains tax. Here’s what Indian tax law says about jewellery passed down from parents or grandparents.

According to Indian tax laws, inherited gold is considered a capital asset, so any profit made from selling it may be subject to capital gains tax. (AI Generated)

Gold has long been a symbol of tradition, prosperity, and financial security for Indian families. Often passed down through generations, gold jewellery is typically received as part of family heritage, gifted during weddings or other significant occasions by parents and grandparents.

However, if the time has come to sell this inherited gold, it’s important to understand how taxation applies.

Is Inherited Gold Taxable? Yes, Here’s How

According to Indian tax laws, inherited gold is treated as a capital asset. This means that if you sell it, capital gains tax may apply on the profit made.

A unique aspect of inherited gold is that, for tax purposes, the purchase date and cost are considered the same as those of the original owner, such as your mother or grandmother.

For instance, if your grandmother purchased the gold in 1981 and you received it during your marriage, the cost and purchase date from 1981 are used for calculating capital gains.

Gold Purchased Before 2001? You Have An Advantage

If the gold was originally purchased before April 1, 2001, you have the option to use the Fair Market Value (FMV) as of April 1, 2001 instead of the actual purchase price. This often benefits the seller, especially when historical records are missing or unclear.

Short-Term vs Long-Term Capital Gains: What’s The Difference?

It’s essential to understand the distinction between short-term and long-term capital gains, as the tax treatment differs:

Previously, gold held for more than 36 months was considered a long-term asset. After the Finance Act 2024, this threshold has been reduced to 24 months.

So now, if you’ve held the gold for over 24 months, the profit is treated as a long-term capital gain, and you’ll be taxed at 12.5% (without indexation). However, if you sell the gold within 24 months, the profit is considered a short-term gain, and will be taxed according to your income tax slab.

Gold vs Nifty50 vs Fixed Deposits: Who Wins Over 10 Years?

When comparing returns on various investments over a decade, such as gold, Nifty50, and fixed deposits (FDs), gold has often delivered competitive, if not superior, returns, especially when held for decades. For example, a Rs 1 lakh investment made decades ago in gold could well have outperformed traditional savings instruments.

In cases where the gold is several decades old, the 12.5% long-term capital gains tax will apply, but that still leaves a significant profit margin.

No Purchase Records? Here’s What You Can Do

If you don’t have access to the original purchase records for the inherited gold, don’t worry. You can rely on either:

• A valuation report from a certified jeweller, or
• The historical gold rates published by the local Jewellers’ Association.

These can serve as valid documentation for determining the cost of acquisition during tax assessment.

In conclusion, yes, tax is applicable when selling inherited gold. But the good news is that the rates are reasonable, especially for long-term holdings. With the right paperwork, such as FMV documents or jewellers’ valuation, calculating and filing taxes becomes a straightforward task.

So, if you’re planning to sell inherited gold, be informed and prepared, and you can make the most of your family treasure, both sentimentally and financially.

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Mumbai: The Indian equities closed sharply lower this week, as initial optimism in markets faded due to ongoing selling pressure from FII outflows amid US tariff concerns. 

Benchmark indices Nifty and Sensex ended the week with a loss of over 2.2 per cent. Profit-booking was evident in metals, IT, realty, and auto, which shed between 0.5 per cent and 1.5 per cent.

In contrast, Capital Goods, Consumer Durables, Media, and FMCG, posted gains between 0.4 per cent and 1 per cent. Broader markets underperformed, with the Nifty Midcap 100 and Nifty Small cap 100 indices declining by 0.57 per cent and 0.39 per cent, respectively.

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Markets opened positively this week, driven by a proposed GST rationalisation, a favourable monsoon outlook, and global factors like easing US bond yields and potential Fed rate cuts in September.

However, caution set in ahead of the US penalty tariff deadline, sparking broad-based selling which led to three consecutive sessions in red zone. Analysts said that subsequent imposition of tariffs on Indian goods further dented confidence, driving profit booking across sectors.

“Large caps declined, while mid- and small caps saw sharper losses on stretched valuations and heightened uncertainty,” said Vinod Nair, Head of Research, Geojit Investments Limited.

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Looking ahead, India’s strong Q1 GDP print driven by government spending and policy measures, may provide a buffer against external headwinds, though fiscal concerns remain. A resolution of tariff disputes may boost market sentiment, but the reciprocal 25 per cent tariff is likely to stay in effect in the near to medium term, he added.

Sectors likely to be affected include textiles, equipment manufacturers, metals, auto, and seafood. IT and Pharma may experience sentiment pressure, although they are not directly impacted by the tariffs.

India’s economy shattered expectations in the April-June 2025 quarter, racing ahead with a remarkable 7.8 per cent real GDP growth.

“Investors should keep a close watch on upcoming domestic and US macro data, including PMI prints, jobless claims, payrolls, and unemployment figures, for further insights,” Nair added.

“Nifty has an immediate support base placed at 24,400-24,350 levels, being the confluence of the recent lows and the key retracement area. Index holding above this level will lead to a consolidation in the range of 24,400-24,900,” Bajaj Broking research said in a release.

Markets are epected to show a mixed trend in near term. Analysts said that sectors focused on consumption and domestic growth, including FMCG, Durables, Discretionary, Cement, and Infrastructure, are likely to benefit from GST cuts, strong demand, and increased government spending.

New Delhi: In a major embarrassment for US President Donald Trump, who in a rhetorical overdrive termed India as a “dead economy,” the country’s economic growth has accelerated to 7.8 per cent in the April to June quarter, fortifying its position as the world’s fastest-growing major economy. 

The strong economic performance amid the US tariff turmoil comes on the back of a 7.4 per cent growth in the previous Jan-March quarter (Q4 FY25).

The strong macroeconomic fundamentals of the economy are reflected in the high foreign exchange reserves, which are sufficient to finance 11 months of imports, and inflation is well under control.

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Union Commerce and Industry Minister Piyush Goyal said on Friday that India’s exports this year will be higher than last year, reflecting the growing competitiveness and resilience of the Indian industry, while the government is reaching out to partner countries across the globe to open up new opportunities.

Goyal highlighted India’s expanding network of Free Trade Agreements (FTAs) with developed countries, including Australia, the UAE, Switzerland, Norway, Liechtenstein, Iceland, and the UK, with negotiations ongoing with the European Union and others.

These agreements will further open global opportunities for Indian industries such as construction, steel, and allied sectors, he pointed out.

Goyal further highlighted that several developed countries are eager to expand trade relations with India, noting that nations such as Qatar and the United Arab Emirates (UAE) have expressed keen interest in entering into Free Trade Agreements (FTAs) with India.

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The minister’s assurance came in the backdrop of the hike in US tariffs on Indian exports to 50 per cent as a punitive step for buying Russian oil.

According to economists, the macroeconomic impact of the US hike in tariffs would be cushioned by the large size of India’s domestic market.

A recent Morgan Stanley report stated that India is the “best placed country in Asia,” amid the global uncertainty triggered by US President Donald Trump’s threat to jack up tariffs, because of the nation’s low goods exports to GDP ratio.

“While India is exposed to direct tariff risks, we believe on balance India is less exposed to global goods trade slowdown, considering that it has the lowest goods exports to GDP ratio in the region,” the report stated.

According to a Fitch report, the large size of India’s domestic market, which reduces reliance on external demand, is expected to insulate the country from the US tariff hike, with the economy expected to maintain a growth of 6.5 per cent in FY26.