Capital asset or not
This query is : Resolved
12 September 2012
if i purchase a watch costing rs 5000 for my personal use and then i studded two diamonds in the watch costing rs 50,000 then watch will be treated as capital asset r not if yes what will be the cost of acqusition
13 September 2012
Personal assets are NOT covered in the definition of capital asset.
However, personal assets DO NOT include jewellery. Jewellery includes precious stones studded in any wearing apparel.
Accordingly your diamond studded watch is a capital asset.
The cost of acquisitions shall be Rs. 5,000 and cost of improvement shall be Rs. 50,000
However, personal assets DO NOT include jewellery. Jewellery includes precious stones studded in any wearing apparel.
Accordingly your diamond studded watch is a capital asset.
The cost of acquisitions shall be Rs. 5,000 and cost of improvement shall be Rs. 50,000
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