Any transfer of jewellery subject to capital gains tax in hands of seller
Any expense incurred on an employee during the official tour is not treated as a perquisite. However, when it is extended as a vacation, expenses on the employee during the vacation period (boarding, lodging and local tours) and all expenses for the entire period, including the official tour period on the members of his household who accompanied him, will be treated as perquisite.
My friend sold me her gold jewellery for R3.5 lakh (market value R4.25 lakh) and after holding it for eight months, I sold it to another friend for R4.15 lakh. How will capital gain be taxed?
As per income tax laws, any transfer of jewellery is subject to capital gain tax in the hands of seller (that is, your friend). The gain may be either short-term (if the holding is up to 36 months) or long-term, depending on the period of holding. At the same time, the inadequate consideration (i.e., difference between the market value of jewellery and the value at which it was sold, if it exceeds R50,000) will be taxable in the hands of buyer (that is, in your hands) as income from other sources. As such, the gain of R75,000 shall be subject to tax
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