I inherited gold jewellery from close relative. How much tax will I pay when I sell it in the market?

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Advice by CA Niyati Shah, Vertical Head – Personal Tax at 1 Finance

When you inherit, there’s relief – and then there’s homework. Inheritance itself is not taxed in India. The real story begins only when you sell. That’s where most legal heirs get caught off guard.

1. It’s not income - until you sell

Receiving inherited gold is not a taxable event, however, the gold jewellery worth ~₹50 lakh becomes your capital asset. The Income Tax Act treats the transfer as inheritance, not income. Tax arises only when you (the heir) sell it: the sale is treated as a transfer of a capital asset and attracts capital gains tax in your hands.

2. The 24-month rule - time defines tax Advertisement

The Finance (No. 2) Act, 2024 (effective from 23rd July, 2024) updated the rules of capita