I sold Gold Coin within 2 months of receiving the gift from spouse. Capital gains in FY25-26/AY26-27...?

Question

Qn Title: I sold Gold Coin within 2 months of receiving the gift from spouse. Capital gains in FY25-26/AY26-27...?

Every year I file NIL Returns through ITR-1 and in this financial year 2025-26/AY2026-27, I received Gold Coin as Gift from my spouse and I sold it within two months in the same financial year 2025-26/AY2026-27.

1. Does the gold coin sale result in Capital Gains for me in financial year 2025-26/AY2026-27? Or can I still continue to file NIL Returns?
2. If the gold coin sale results in Capital Gains, should I file using ITR-2 or can I file using ITR-1?
3. Will the gold coin sale be considered as Short-term Gains or Long-Term Gains?
4. If Short-term how will tax be calculated in my case?
5. If Long-term how will tax be calculated in my case?

Sreekanth Reddy · Answer

Hi,

Yes, the sale of the gold coin triggers capital gains in FY 2025-26 (AY 2026-27), so you cannot file a NIL return using ITR-1. Use ITR-2 instead to report the capital gains from this sale. Since the holding period was only two months, it qualifies as short-term capital gains (STCG), taxed at your applicable income tax slab rates after adding to total income.

Gifts from a spouse are tax-exempt at receipt under Section 56, but any profit on sale is taxable as capital gains for the recipient. The cost of acquisition is the original purchase cost to your spouse (or fair market value if acquired before 2001), with your two-month holding period determining STCG status

Kanta Malini · Answer

@sreekanth : Thanks for the response.My spouse received the gold coin as a gift from his mother (deceased 8 years ago) which he gifted to me in FY 2025-26. He doesn't remember when his mother gifted it to him and we don't know exactly how she acquired it (most likely a gift from her relative before 2001 but we are not certain). So in this case, how to arrive / calculate the profit on sale for the STCG?

Sreekanth Reddy · Answer

@kanta-malini

The chain of gifts—from your mother-in-law (deceased) to your spouse, then to you—doesn't change the core rule: your cost of acquisition traces back to the original purchase cost by the first non-gift/inheritance owner (likely a relative before 2001). With uncertain details, use Fair Market Value (FMV) as on April 1, 2001, for the STCG calculation.

Determining Cost of Acquisition

Under Section 55(2)(b), for gifted/inherited assets, the cost is the previous owner's acquisition cost. Since records are unavailable and pre-2001 acquisition is probable, take the higher of actual cost (unknown) or FMV as on 1-4-2001—this is allowed and often practical for old family gold.

Obtain FMV via a registered valuer's report (under Section 55A if needed), based on gold market rates on 1-4-2001 (approx. ₹800-₹1,000/gm for 24K, depending on coin weight/purity). STCG = Sale Price - FMV (1-4-2001) - Transfer expenses (if any).

Practical Steps

Get a valuer's certificate for FMV as on 1-4-2001 to support your ITR-2 filing.
Holding period starts from original owner's acquisition (pre-2001), but your 2-month hold still qualifies as STCG (under 24 months from your receipt). Tax at slab rates.
Retain any old records/invoices if found; otherwise, FMV protects against scrutiny. You can also Consult a local CA for valuation, in case the value is high.