New Delhi, Jan. 8 -- Is long-term capital gain from the sale of jewellery taxable for an individual whose income is lower than the basic exemption limit? If yes, what is the rate of tax on such capital gains?

Answer: Jewellery is treated as a capital asset, and any profit made from the sale of a capital asset is taxed as a capital gain. The capital gains can be taxed in the short or long term, depending on the holding period.

The holding period to make a capital asset, long-term or short-term, differs for different classes of capital assets. Profits on jewellery sales are treated as long-term capital gains if the jewellery is sold after 24 months. Otherwise, the same are taxed as short-term capital gains. Such short-term capital gains a...