Tax effect on gold / jewellery of NRI / OCI in India

As far as India is concerned if you are buying and selling gold and other such precious metals you need to pay capital gain tax on same in India if the sale is effected in India by NRI.

Yes you need to pay capital gain tax whenever you sell gold.

No it is not advisable to buy or sale gold in cash.

Yes you can take gold on travel as per the custom rules of respective country.

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

1. Jewellery/Coins/biscuits are capital assets and sale of such assets attracts capital gain tax in India. Income derived by an NRI from sale of such assets is an Indian Income therefore he is liable to pay Income tax on such income and disclose such transactions in ITR in India. 

Reporting of purchase of gold jewellery or ornaments is optional unless total income exceeds Rs. 50 lacs in which case it is mandatory to fill Schedule AL and report assest and liabilities in India. 

2. For purchase of jewellery exceeding Rs.2 lacs per transaction, you have to submit PAN to the seller.

3. If sold in cash it should not exceeds Rs.2 lacs per transaction. It is advisable to use banking channels for both sale and purchase.

4. It is subject to custom rules of India and USA. 

For detailed discussion you may opt for phone consultation.

1. In India, an individual's selling of gold jewellery/coins/biscuits/bars/bullion will be treated as a capital gain. If an NRI earns any profit from the sale of these assets, then while filing his Income Tax Return in India, tax has to be paid. 

Even if you sell gold received from your parents as a gift, there will be capital gain in your hands, and you will be liable to pay taxes. 

2. No need to report any purchase of the above-mentioned capital assets. But the sale of these assets has to be reported in the ITR under the head capital gain. 

If you purchase gold of more than Rs. 2 Lakhs, then you have to submit your PAN with the vendor as mandatory compliance on the part of the vendor. 

3. Cash sale exceeding Rs. 2 Lacs is prohibited from promoting the digital economy. It is advisable to make all your purchases and sales using banking channels. 

4. When you carry gold jewellery from the US to India, there is a specified limit. For Men - 20gms up to a maximum of Rs. 50,000 and for females - 4 gms up to a maximum of Rs. 1,00,000. However, this qty will also depend upon various other factors like the person's stay in the US etc. 

When you carry gold from India to the Us - there is no such limit and no customs duty to be paid on it in India at the time of leaving for the Us. But it's better to get an export certificate from the customs regarding the quantity of jewellery being taken out so that you do not face any problem when taking the jewellery back to India. 

5. Even if a person has lost the purchase receipts, he will still be liable to pay capital gain. You can take the valuation of the registered valuer in this regard to assist you in calculating capital gain. 

1.You don't need to report the gold purchase. However, when you sale it (either purchased or gifted), capital gains tax would be attracted. 

2. If you purchase gold of more than Rs. 2 Lakhs, then you have to submit your PAN with the vendor as mandatory compliance on the part of the vendor. 

3. You should refrain from purchasing the gold in cash.

4. Even if you have lost the purchase receipts, you can obtain the valuation of the registered valuer for computing capital gains. 

5. You can carry gold subject to customs limit.