How to legally claim, transport, and sell inherited gold bars from a parent’s bank locker

My father, who lived in Delhi, passed away in October. His locker there contains several 20g gold bars but no purchase bills or proof of ownership. I live in Bangalore and want to transfer the gold here, is there a lawful way to transport it without running afoul of authorities? What documentation (e.g., death certificate, probate/succession certificate, locker records) do I need to establish legal ownership and clear customs/police checks during inter-state movement? If I decide to sell the bars, what tax implications and KYC/valuation documents will buyers or jewellers require? Appreciate practical, step-by-step guidance.

Advice by Shraddha Nileshwar, Head – Will & Estate Planning at 1 Finance

I'm sorry for your loss. Since there is no mention of a Will and no available purchase proofs, let’s focus on intestate succession for the asset in question, i.e., gold bars. Given that the religion professed by your father is unclear, let’s envisage all possible scenarios so that it would provide a detailed understanding as to what is to be done:

Step 1: Establishing legal ownership

Start by collecting the foundational documents that confirm your relationship and succession rights:

· Procure the death certificate: Obtain this from the Delhi Municipal Corporation (either online or in person). It’s your starting point for all subsequent paperwork.

· Legal Heir Certificate: Issued by the local Tehsildar/SDM, it identifies all surviving family members entitled to the deceased’s estate. You’ll need your father’s death certificate, your ID (Aadhaar/PAN), and an affidavit listing the heirs.

· Succession Certificate (Movable Assets): Since there is no Will in place, you will have to procure a Succession certificate (essential in case of gold holdings) as it establishes legal ownership, specially in the absence of purchase bills (Section 370, Indian Succession Act). File a petition in Delhi’s District Court to procure the Succession certificate with the following documents: Requirements:

> Death certificate.

> Legal heir certificate.

> Affidavit detailing assets (gold bars) and heirs.

> NOCs from other heirs, if any

> Payment of a small court fee (roughly 2–3% of the gold’s value)

2. Accessing the locker

Once you have the above documents, contact the bank branch in Delhi where the locker is held. Under the RBI’s locker claim rules, banks are required to release contents to legal heirs within about 15 days of complete documentation, although in practice it may take longer if there’s no nominee.

Carry along the following documents with you for procedural ease:

· Death certificate

· Succession certificate (or equivalent proof for Muslim family settlements)

· Your KYC documents (PAN, Aadhaar, proof of address in Bangalore)

· The bank’s standard claim form

The bank will open the locker in your presence, make an inventory (with photos and weight details), and then release the gold. You can either collect it in person or request an insured transfer to yourself. Importantly, there is no inheritance tax on receiving these assets.

3. Moving the gold to Bangalore

Moving inherited gold between states is perfectly lawful and is not treated as an “import,” and no GST or customs formalities apply as long as it’s for personal use. However, given heightened scrutiny around the gold movement, it is paramount to carry documents showing legitimacy.

Keep these handy while carrying the gold with you:

· Succession certificate / family settlement deed (as the case maybe)

· Bank’s locker inventory statement

· Death certificate (copy)

· Your ID and travel proof (train or flight ticket)

· A brief self-declaration stating the gold was inherited from your late father’s estate

Pro tip:

· Carry it personally in a handbag or small box; gold up to 100 grams usually passes without incident at airport security.

· For larger quantities, use insured services from India Post or the bank’s authorized logistics partner.

· If questioned at checkpoints, produce the documents; officers typically verify and release promptly if the papers are in order.

· Once home, deposit the bars in a secure locker in Bangalore.

This approach ensures compliance with CrPC Section 102 (which governs police seizure of unaccounted property) and shields you from tax department queries about “unexplained assets.”

4. If You Choose to Sell the Gold

Receiving inherited gold isn’t taxable. While the transfer itself is exempted, capital gains tax arises only when you sell it. Since you have no purchase bills for the gold bars in your father’s Delhi locker, the tax and sale process hinges on establishing the Cost of Acquisition (COA) and holding period for capital gains. Below are the two scenarios for calculating gains:

> Two scenarios for Capital Gains Calculation:

1. Pre-2001 Purchase: If your father bought the gold before April 1, 2001, the COA is the Fair Market Value (FMV) as of 01.04.2001. You’ll need a registered valuer’s certificate to confirm this.

2. Post-2001 or Unknown Purchase: If the purchase date is post-2001 or unknown, the COA is the FMV at inheritance. A valuer’s certificate is required to establish this FMV.

> Holding period for tax purposes:

1. The holding period starts from your father’s date of acquisition. For inherited assets, your holding includes his ownership period (Section 2(42A), Income Tax Act).

2. LTCG Eligibility: If the combined holding period exceeds 2 years, the profit is taxed as LTCG at 12.5% + applicable surcharge and cess on gains. If the holding period is within 2 years, it’s considered STCG and taxed at your income slab rate (e.g., 30% + surcharge and cess for high earners).

Pro tip: Avoid local or informal buyers; reputed jewellers offer better transparency and payout through bank transfer within a day, usually after deducting a small fee (0.5–1%).