Section 2(14): Definition Of Capital Asset [Newly Added]

Definition Of Capital Asset Under Capital Gain Tax

1. Capital asset means property of any held by assessee, whether or not connected with business or profession.
2. Any securities held by a Foreign Institutional Investor (FII). But capital asset does not include

• Any stock, consumables or raw material, held for the purpose of business or profession
• Personal goods such as clothes and furniture held for personal use
• Agricultural land in rural(*) India
• 6½% gold bonds (1977) or 7% gold bonds (1980) or National Defence gold bonds (1980) issued by the central government
• Special bearer bonds (1991)
• Gold deposit bond issued under the gold deposit scheme (1999) or deposit certificates issued under the Gold Monetisation Scheme, 2015
• UNIT LINKED INSUREANCE POLICY to which u/s 10(10D) does not apply due to fourth and fifth proviso there of.

Important Notes

1. Assets used for personal purpose of assessee like T.V, Car Mobile etc are not capital assets and capital gain not applicable.
2. But Jewellery, Drawings, Painting are capital asset and capital gain tax is applicable.
3. Car used in the business treated as capital asset.