Capital Gains Exchange of old jewellery with new one without any bill or invoiceCost of new jewellery more than exchanged one

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers Capital Gains--Exchange of old jewellery with new one without any bill or invoice--Cost of new jewellery more than exchanged one Query The facts of the case are as follows: -- An Assessee has acquired Jewellery worth 40 Grams by exchanging old Jewellery worth 25 Grams and paying the balance amount. Whether Capital Gains would be attracted on the aforesaid transaction. -- The Assessee feels that Capital Gain arises if there is a transfer of a capital asset. In this case old Jewellery in the form of gold is exchanged by converting it into different ornaments and paying the additional money. Hence there would be no Capital Gains on the exchange of gold as any ornaments for the resale or exchange in whatever form are measured in terms of Gold by weight and making charges levied at the time of purchase would be irrelevant. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Capital Gains--Exchange of old jewellery with new one without any bill or invoice--Cost of new jewellery more than exchanged one

Query

The facts of the case are as follows:

-- An Assessee has acquired Jewellery worth 40 Grams by exchanging old Jewellery worth 25 Grams and paying the balance amount. Whether Capital Gains would be attracted on the aforesaid transaction.

-- The Assessee feels that Capital Gain arises if there is a transfer of a capital asset. In this case old Jewellery in the form of gold is exchanged by converting it into different ornaments and paying the additional money. Hence there would be no Capital Gains on the exchange of gold as any ornaments for the resale or exchange in whatever form are measured in terms of Gold by weight and making charges levied at the time of purchase would be irrelevant.