Can You Sell Gold Jewellery Inherited From Your Mother? Here’s What the Law Says

Yes, you are legally allowed to sell gold jewellery inherited from your mother. However, the moment you decide to sell inherited gold, tax rules—especially those related to capital gains—come into play.

When you receive gold jewellery as inheritance, you do not have to pay any tax at the time of receiving it. But once you sell it, the profit you earn (the difference between the sale price and the original cost of acquisition) is considered capital gains, and tax becomes applicable based on how long the jewellery has been held.

Tax Rules for Selling Inherited Gold Jewellery

1. Long-Term Capital Gains (LTCG) Tax

If you sell the inherited gold after 24 months, it is treated as a long-term capital asset.
In this case:

• Long-term capital gains tax of 12.5% is applicable.

• You can also avail indexation benefits, meaning the original cost is adjusted for inflation, reducing your taxable gain.

2. Short-Term Capital Gains (STCG) Tax

If the jewellery is sold within 24 months, then:

• The gains are considered short-term capital gains.

• STCG is added to your income and taxed as per your applicable income tax slab rate.

Important Points to Remember

• Since the jewellery was inherited, the cost of acquisition is considered the price at which your mother originally purchased it.

• To calculate capital gains accurately, you may need old purchase bills or an estimated valuation as accepted by tax rules.

• If you are selling jewellery without documented proof of its original cost, the valuation may be done based on a registered valuer’s report.

Conclusion

Yes, you have the right to sell your mother’s gold jewellery inherited by you. Just ensure you understand the tax implications before proceeding. If sold after 24 months, it will be taxed as long-term capital gains at 12.5%, potentially with indexation benefits, helping you reduce your tax liability.