By Chirag Nangia

  • What is the tax treatment on gains made from selling gold ornaments which I inherited from my grandparents?
    — Gaurav Rajput

Capital gains shall be calculated by reducing the cost of acquisition from sale consideration. However, since it is a case of inheritance, the period of holding will be calculated from the time your grandparents held the asset. Further, the price at which your grandparents acquired the gold will be considered for the purpose of calculating cost of acquisition. The benefit of indexed cost of acquisition shall be considered if such gold is held as a long-term capital asset.

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  • As I do most purchases through credit card, do I have to ensure that the total amount spent in a financial year is below Rs 10 lakh so that it is not reported in my annual income statement?
    — SR Anand

Where payment of bills in respect of one or more credit cards exceeds Rs 1 lakh in cash or Rs 10 lakh by any other mode, the bank has to report the transactions to the IT department. Therefore, in case above limits are exceeded, the transaction will reflect in AIS.

  • I do some intraday trading throughout the year. No amount is deducted as TDS and the transactions are not reflecting in my AIR and the pre-filled ITR form. How do I calculate the short-term capital gains?
    — Alok Jha

Income from intraday trading is considered as speculative business income. For calculation of  income/loss, ask your broker/platform to share with you the statement showing profit/loss earned through intraday trading.

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  • I am a non resident Indian (NRI) and getting a salary in Luxembourg. I am paying tax and file returns in India too for the interest income, etc. In FY 2022-23, I bought a house in Luxembourg after taking a loan from a bank there. In my ITR of AY 2023-24, do I have to mention purchase of a house and salary received in Luxembourg?
    —Name withheld

An NRI is only liable to tax in India to the extent of India sourced income. Thus, there is no need to mention the details of the house purchased and salary received in Luxembourg.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com