21 August 2009
Capital Asset [Sec. 2(14)] Capital asset means any kind of property held by an assessee –whether or not in connection with his business or profession; whether movable or immovable; but does not include the following:
(1) Stock in trade: Stock in trade, consumable stores or raw materials held for business or profession. (2) Personal effect other than jewellery: Personal effect means any movable property (excluding jewellery#) held for personal use of the assessee or for any dependent member of his family. Stress (3) Agricultural land in rural area: Agricultural land in India is not a capital asset except the following – • land which is situated within the jurisdiction of any Municipality or Cantonment Board having population of 10000 or more; or • land which is situated in any area within such distance not being more than 8 km from the local limits of any Municipality or Cantonment Board as specified by the Central Government. (4) Gold Bonds: Following gold bonds issued by the Central Government are not capital asset: • 6.5% Gold Bond, 1977; • 7% Gold Bonds, 1980; and • National Defence Gold Bond, 1980
(5) Special Bearer Bond: Special Bearer Bond, 1991 issued by the Central Government. Note: It is not necessary that the assessee should be the initial subscriber.
(6) Gold Deposit Bonds: Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government. Note: Interest on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 is exempt [Sec. 10(15)(vi)]
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