Can profit on sale of gold be deposited in CGDS?

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  1. Vibhash Dave

    Vibhash Dave New Member

    I am planning to buy residence property in Mumbai for which i planned to sell gold which is received from my forefathers , this is old gold . If such gold is sold now , i believe it will surely attract long term capital gain attracting tax & making me liable to pay tax , but i intend to purchase residence property & want to re-invest income from sale of gold into purchase of property.

    So need to know if income from sale of gold can be deposited into capital gains depository scheme in bank and then purchase property, if this can be done will it attract capital gains & is there any liability to pay tax although money received from sale of gold is reinvested in buying property?
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    Dear @Vibhash Dave

    The amount received from Sale of Gold can be deposited in the Capital Gains Account Scheme.

    The whole of the amount invested in purchasing a Residential Property can be claimed as an exemption under Section 54F and No Tax would be levied on such amount.
     
    Raunak Gupta likes this.
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