In this Article we have compiled  Gold rates (standard 24 carats) (per 10 gms.), Silver rates (9,960 touch) (per 1 kg.) as on 01.04.1981 and for every 31st March starting from the Year 2004 to Year 2016.

Valuation of Jewellery Under Wealth Tax Act Provisions

Rules 18 and 19 which provide the manner in which valuation of jewellery is to be determined.
1. The value of the jewellery shall be estimated to be the price which it would fetch if sold in the open market on the valuation date.
2. The return of net wealth furnished by the assessee shall be supported by –
(i) a statement in the prescribed form, where the value of the jewellery on the valuation date does not exceed Rs. 5 lakh. (Not Required to be attached with Return from A.Y. 2014-15)
(ii) a report of a registered valuer in the prescribed form, where the value of the jewellery on the valuation date exceeds Rs. 5 lakh. (Not Required to be attached with Return from A.Y. 2014-15 but Assessee has to furnish details of such Statement in his Wealth Tax Return)
gold-ingots-golden-treasure-bullion-precious3. In spite of the above provision, the Assessing Officer may, if he is of the opinion that the value of the jewellery declared in the return –
(a) is less than its fair market value by the percentage prescribed under section 16A(1)(b)(i).
(b) is less than its fair market value as referred to in section 16A(1)(a), refer the valuation of such jewellery to a Valuation Officer and the value of such jewellery shall be the fair market value as estimated by the Valuation Officer.

Gold and silver rates for the current year, last ten Assessment Years  (A.Y.) and on April 1, 1981

A.Y.  /

valuation

date

Gold rates1 (standard 24 carats) (per 10 gms.)Silver rates (9,960 touch) (per 1 kg.)A.Y.  / valuation dateGold rates1 (standard 24 carats) (per 10 gms.)Silver rates (9,960 touch) (per 1kg.)
 Rs.Rs. Rs.Rs.
1-4-19811,6702,715 2010-11/ 31-3-201016,32027,255
 2004-05 /31-3-20046,06511,7702011-12 /31-3-201120,77556,900
 2005-06 / 31-3-20056,18010,6752012-13 / 31-3-201228,04056,290
 2006-07 /31-3-20068,49017,4052013-14 / 31-3-201329,61054,030
 2007-08 / 31-3-20079,39519,5202014-15 / 31-3-201428,47043,070
2008-09 /31-3-200812,12523,6252015-16 / 31-3-201526,24537,825
2009-10/ 31-3-200915,10522,1652016-17/ 31-3-201628,34036,990

Notes :

1. Value of gold contained in gold ornaments should be reduced by 14 to 20 per cent of ruling rates of standard gold, as per the practice prevalent in the bullion market and the amount of reduction has to be worked out in the following manner :

Plain gold bangles and ornaments made of solid goldOther gold ornaments
Difference in value between 24 carats of standard gold and 22 carats of gold ornaments (gold ornaments are generally made of 22 carats of gold)8.33%8.33%
Soldering made of copper, silver, etc., used in making ornaments2.5% to 5%8.33%
Shortage of gold in melting, mint charges payable to Government, expenditure on freight, insurance, etc., of sending gold ornaments to approved mint for conversion into standard gold bars1.25%1.25%
Margin of profit of the dealer when ornaments are sold in market2%2%
Total reduction14.08% to 16.58%19.91%

2. Silverwares, utensils, etc., is liable for wealth-tax till financial Year ending on 31.03.2015.

3. Conversion table:

10 grams=0.857 tola1 tola=11.664 grams
1 kilogram=85.734 tolas10 tolas=116.638 grams

Source- Income Tax Website.

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