Old Gold Exchange Kolkata: What Jewellers Deduct and Why

In an old gold exchange in Kolkata, you're credited for the pure gold in your jewellery at that day's rate. Then the jeweller subtracts named deductions. These cover stones and other non-gold weight, any purity shortfall, and sometimes a melting charge or a lower exchange rate.

Making charges and GST from your original purchase never come back. So if you're trading a mother's chain or a broken bangle for wedding jewellery, ask for each cut on paper. Every fair deduction has a name, a number and a reason you can check.

How Is Old Gold Exchange Value Calculated?

Old gold exchange value is net gold weight times the per-gram rate for its tested karat, minus named deductions.

Exchange value = net weight (g) × day's rate for the tested karat − melting charge (if any)

Net weight is the gold alone. Gross weight is everything on the scale, including stones, lac and dust. The gap between those two numbers causes most arguments at the counter.

The rate side is simpler. Each karat has its own per-gram board rate, and the 22K rate already assumes 91.6% gold. Check today's gold rate in Kolkata and note the update time before you leave home.

Next, work out the value yourself with this gold calculator. Treat the answer as a starting point, because the purity test at the counter sets the final figure.

What Do Jewellers Deduct on Old Gold?

Jewellers deduct for non-gold weight, for purity below what's claimed, and sometimes for melting loss or a rate gap. Each should appear as its own line, never as one vague percentage.

Weight That Isn't Gold: Stones, Lac, Solder and Dirt

Stone weight comes off first, because stones, beads and enamel add grams but hold no gold. A clean deduction weighs them separately. Alternatively, it uses the stone weight printed on your old bill.

Lac is the next big one. Lac is the hard resin filling many bangles. It can outweigh the thin gold shell around it, so it must come out before the gold is valued.

Solder and findings are trickier. Solder is the metal joining parts, and findings are hooks, screws and clasps. Older solder is often lower karat, so a repaired piece can test slightly lower.

Dirt is real but small. Years of soap and skin build up in carvings and hollow joints. Cleaning the piece first with these simple steps to clean gold jewellery at home removes that argument.

Also check what the white pieces really are. White gold is valued as gold, but platinum is priced on its own rate. This comparison of whether platinum or gold costs more explains the difference.

Before anyone quotes you a rupee figure, ask one thing. What's the net weight after the non-gold parts come out?

Purity: Tested Karat vs What You Were Told

Purity isn't a deduction in itself. You're paid for the gold the piece contains, so a 22K chain testing at 91.6% is credited as 22K.

The problem starts when a piece tests lower than its owner believed. A "22K" bangle reading 84% gets credited as roughly 20K. That's a real loss, but it's measured, not guessed.

Many shops test with an XRF machine, a non-destructive X-ray purity tester. It reads the surface in a minute or two. Fire assay, the melt-and-weigh lab method, is more exact but destroys the sample.

This gold purity chart for 24K, 22K, 18K and 14K matches readings like 916, 750 and 585 to karats. For karat and fineness explained in more depth, see the metal guide. Before you go, you can also learn how to check the purity of gold before buying.

The Rate Gap: Selling Rate vs Exchange Rate

Some jewellers credit old gold at a lower per-gram rate than the one they sell at. This buy rate vs sell rate spread is the deduction most people never notice.

A ₹200 gap looks small on a board. On 9.4 g of gold, however, it's ₹1,880. So ask whether the exchange rate matches the selling rate on that day's board.

Melting Loss and Refining Charges

Melting loss is the small amount of weight lost when old jewellery is melted and refined. Heat burns off dirt, solder flux and a little metal.

Some shops charge a fixed percentage for this, often 1% to 3% . Others absorb it on exchange. Either way, the percentage should be named before weighing starts.

Why Making Charges and GST Don't Come Back

Making charges pay for labour and design, not metal, so no jeweller credits them back on exchange. Wastage, the gold lost during manufacturing, works the same way.

GST you paid on the original bill was a tax on that purchase. It doesn't travel with the gold. That's why a piece bought last year returns less than its bill, even at the same rate.

What a "0% Deduction" Offer Really Means

A "0% deduction" offer usually means no melting or refining percentage is charged. It doesn't mean you get back your original bill.

Stones and lac still come out. Purity is still tested. Original making charges and GST still don't return. Some offers also apply only when you buy above a set value, so ask what "0%" covers in writing.

Bengali Pieces That Need Extra Care at the Counter

At an old gold exchange in Kolkata, Bengali bridal pieces need the closest net-weight check. They carry more non-gold weight than most jewellery, and that's where disputes usually start.

Pola or Sakha With Gold Covering

Only the gold cover on a pola or sakha counts. The coral or conch underneath has no gold value, so the gross weight overstates the gold by a wide margin. Ask how the cover's weight will be found: by removing it, or by an estimate.

Lac-Filled Bangles Such as Bala and Chur

Many old Bengali bala and chur are hollow and lac-filled. The lac usually has to be heated out before the gold is weighed. Ask to see the weight after lac removal, not a percentage guess.

Pearl Mantasha and Pearl Necklaces

Pearls, silk thread and wax are all non-gold weight. This pearl mantasha bridal guide shows how much of a mantasha is pearl. The same logic applies to these trending gold pearl necklace designs.

Hollow and Lightweight Pieces

Light, hollow designs trap dust and soap inside. They also carry more solder per gram than solid gold, so expect a closer purity check.

Worked Example: 10 g of Old 22K Gold, Rupee by Rupee

Here is one old 22K necklace valued three ways, using Biswakarma's posted 22K rate of ₹13,500 per gram. That rate was updated on 17 October 2026 at 11:50 am. Check today's figure before you rely on these numbers.

Say the necklace weighs 10.0 g gross. It has 0.6 g of stones, which leaves 9.4 g of net gold. The XRF test reads 91.6%, so it's credited as 22K.

The three shops are illustrations, not real quotes. Same necklace, same day, yet the credits differ by ₹4,380. Every rupee of that gap comes from two named lines.

Purity moves the number further. If the necklace had tested at 84% instead, its credit would fall by about ₹10,500.

Now look at what the credit buys. A new 22K chain of similar weight costs the gold value plus new making charges and GST. Browse gold chains or gold necklaces to compare.

Plain, light designs lose less to making charges the next time you exchange. This guide to lighter designs to stretch the value covers them.

Some families split one old necklace across two gifts, such as a groom's ring and a small chain. These engagement rings for men with gold and diamond prices show what a few grams buys.

Bill Lost, Another Shop's Gold, or No Hallmark?

You can exchange old gold without a bill, gold bought from another jeweller, and non-hallmarked gold. Value comes from the test and the scale, not the paperwork.

Exchanging Old Gold Without a Bill

Your mother's old chain isn't worth less because the bill is lost. Its purity can be tested in a few minutes. Still, a bill helps, because it shows stone weight and proves your purchase date for tax.

Gold Bought From Another Jeweller

A fair shop applies the same rule to every piece it tests. If a store cuts more for gold bought elsewhere, ask what that extra line is for.

Non-Hallmarked and Old Four-Mark Hallmarked Gold

BIS confirms consumers can sell old jewellery to jewellers, whether hallmarked or not. The same FAQ says a hallmark stays valid for the jewellery's whole lifetime. Inherited pieces without marks simply get tested.

Since HUID, a six-digit Hallmark Unique ID, began in July 2021, a BIS hallmark carries three marks. They are the BIS logo, purity and the HUID. The Ministry of Consumer Affairs confirmed in March 2023 that older four-mark jewellery stays valid.

You can check any HUID in the BIS Care app. This explainer covers what HUID means and how to read each mark.

GST and Income Tax When You Exchange Old Gold

You don't pay GST on old gold you hand over. An exchange can still create a taxable capital gain, though.

Is GST Charged on Old Gold Exchange?

No, an individual handing over old jewellery doesn't pay GST on it. In a July 2017 press release, CBIC clarified that such a sale isn't made in the course of business. So it isn't a taxable supply, and claims of "3% GST on old gold" are outdated. You still pay GST on the new jewellery you buy.

Is Old Gold Exchange Taxable in India?

Yes, it can be, because exchanging doesn't make a gain tax-free. Handing over the old piece and buying a new one are separate transactions. Any gain on the old piece may be taxable.

The Income Tax Department's capital gains rules treat jewellery held over 24 months as long-term. For transfers on or after 23 July 2024, long-term gains are taxed at 12.5%, without indexation. Jewellery held 24 months or less is short-term and taxed at your slab rate.

Inherited gold carries the original owner's cost and purchase date. This is general information, not tax advice. Talk to a chartered accountant about your own case.

Exchange or Sell for Cash: Which Suits You?

Exchange usually suits you if you're buying new jewellery anyway. Selling for cash suits you if you need the money for something else.

Many jewellers credit slightly more on exchange than on a cash sale. You'll still pay making charges and GST on the new piece, though. So compare the full new bill, not the credit alone.

This gold resale value guide on selling vs exchanging works through both with numbers. If you're tempted to wait for a better rate, read this outlook on whether gold prices may rise or fall. Nobody can promise which way it goes.

Exchange makes less sense when a piece carries memory you can't replace. Some pieces are worth more worn than melted.

What We Deduct at Biswakarma, and What We Don't

Here's our own exchange rule at the Barasat showroom, line by line, so you can compare it with any quote.

If you're planning a wedding set with exchange value, see our bridal gold set price list. For Bengali bridal staples, browse our gold pola designs and gold-covered sakha.

Old jewellery with diamonds needs separate handling. Read our diamond buying guide before deciding whether to keep or reset the stones.

6 Questions to Ask Before Anyone Weighs Your Gold

Ask these six questions at any counter, before the piece leaves your sight.

1. Can I watch the weighing and the purity test?

2. What's the gross weight, and what's the net weight after stones and lac come out?

3. What purity did the test show, and can I see the reading?

4. Is your exchange rate the same as today's selling rate?

5. Do you charge any melting or refining percentage? How much?

6. Will you give me a written slip with every line?

If a shop won't answer any of these plainly, get a second quote. On a 20 g piece, a gap of ₹200 per gram is ₹4,000.

Get Your Old Gold Valued in Barasat

Start your old gold exchange in Kolkata with a valuation at Biswakarma's Barasat showroom, near Subhash Maidan. The showroom is open 11 am to 8:30 pm, every day except Thursday. Visit or WhatsApp us to check the day's rate first.