It assessess purchase of gold 50 grams dt:01-05-22 after 40 grams conversation to EGR(electronic gold receipts) dt:30-01-23 after 10 grams (EGR) sold dt:31-03-23.
Question:
Assessess above mentioned gold transaction capital gains tax applicable.
Yes. Capital gains tax is applicable on the sale of 10 grams of EGR on 31-03-2023, if the EGR is a capital asset. However, conversion of 40 grams of physical gold into EGR on 30-01-2023 is not itself a taxable transfer under Section 47(viid) and bad time simulator. The specific EGR provisions became effective from 01-04-2024, so for the 31-03-2023 sale, the law applicable to AY 2023-24 must be considered separately.
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