2(14) - DEFINITION OF 'CAPITAL ASSET'
GENERAL MEANING: Capital
asset Means property
of any kind held by an assessee, whether or not connected with his
business or profession (such
property con be movable, immovable, tangible, intangible etc).
EXCLUSIONS: Following items NOT be treated as capital assets:
Any stock-in-trade, consumable stores or raw materials held
by an assessee for the purposes of his business or profession.
refer to movable
property held for
the personal use
of the assessee
or any member of his family
dependent on him.
Personal motor car, household furniture, electronic appliances meant for
personal use, etc. However, the following assets
shall not be treated as personal effects
evert though these
assets are movable
and are held by the assessee for personal use
Jewellery and bullion (jewellery includes ornaments of gold, silver,
platinum or any other precious
metal; precious or semi-precious stones,
whether or not set in any furniture, utensil or other
article or worked
or sewn into
any wearing apparel);
archaeological collections (relating to past/ancient times);
drawings & paintings;
any work of art.
Note: if items
likes motor car, electronic appliances, etc are held for business
purposes, they are treated as capital
Note: Silver utensils like
thalis, katoris, tumblers, etc held for personal use were held
to be personal effects. Thus,
no capital gains
would arise on sale of such silver
utensils v CTT).
Note: Sale of silver coins, gold
coins, silver bars,
gold utensils, etc used for the purposes of Mahalaxmi Pooja
and other festivals was held to be liable to capital
gains as such asset did not qualify
as personal effects
(SC's judgement in the case of Maharaja Rana Hemant Singh
RURAL AGRICULTURAL LAND IN INDIA:
Agricultural land outside
India: Always a capital asset
whether situated in rural area
or urban area.
Agricultural land in India: Capital asset only if situated in urban area.
If situated in rural area, such agricultural land shall not qualify as a capital
Meaning of 'Urban Area'
The following two points define the scope of 'Urban
any area situated within the local limits of a municipality/cantonment board having a population of 10,000 or more;
any additional area beyond
the local limits
of the above
mentioned municipality/cantonment board
to the extent provided in the table
Population of the area as per tie latest census published before the commencement of relevant PY
Shortest aerial distance from the loco,
limits of the municipality/cantonment
10,000 and < 1,00,000
1,00,000 and < 10,00,000
Gold Deposit Bonds
issued under the Gold be sit Scheme
1999 or issued
under the Gold
Monetisation Scheme, 2015 notified b the Central Government.
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