In every ET Wealth edition, our panel of experts answers questions related to any aspect of personal finance. If you have a query, mail it to us right away at etwealth@timesgroup.com.
I recently sold some gold jewellery, accumulated over the past 10-15 years. I am not sure which piece was bought when, as the records are not available. I don’t know how to calculate capital gains after indexation since the years of purchase are not known.
Amit Maheshwari, Partner, AKM Global replies, “Ordinarily, for claiming the cost and indexation benefit thereon of the jewellery, one needs to have the original bills/receipts for the purchase of the same. In the absence of those, it could be difficult to claim the benefit of the cost. Anyway, you can take some conservative estimates of the costs based upon market value and time of purchase to the best of your judgment.”
I made payments to a builder over three financial years for purchase of a flat. For the purpose of arriving at the indexed cost of acquisition, which financial year should be considered as the year of acquisition? Should the payments made in each financial year be indexed and added up to arrive at cost of acquisition?
Amit Maheshwari Partner, AKM Global replies, “In case of purchase of flat, where payments were made over a span of time, benefit of Indexed Cost of Acquisition shall be available to the taxpayer on the basis of the year in which the payments were actually made. Hence, you will need to index the value for each year separately.”
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