Apart from being used as ornaments, gold has remained a key financial asset for Indian households.
But when you sell the gold you have kept as an asset, at a cost higher than the purchase, it leads to capital gains tax. It is to be noted that when you sell any asset at a price which is higher than the price at the time of purchase it leads to capital gains tax.
In such a scenario, many individuals are interested in knowing about ways to save tax on capital gains from the sale of gold. One common question that often comes is that if a man gives money to his wife to buy gold jewellery, and the bill is generated in her name, then who will pay tax on income from the sale of gold in future? In such a situation, it is to be understood that income arising on a property directly or indirectly transferred by an individual to his/her spouse will be clubbed with the income of such individual.
However, the same is not the case if such a transfer is not made against adequate consideration as a part of a divorce settlement or under an agreement to live apart.
So, in such cases where a man transfers money to his wife in order to purchase gold jewellery, the same will attract clubbing provisions. Any capital gains accruing on the transfer of such jewellery will be clubbed with the income of the man. Not only gold but purchasing real estate property, investing in stocks and mutual funds also doesn’t give a man any relief from the capital gains tax liability arising after the sale of such property.
