capital bgain

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Ajay vaghasiya

Ajay vaghasiya (Querist)
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21 August 2009 what is the mening of capital asset

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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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)]

vijay singhal

vijay singhal (Expert)
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22 August 2009 refer sec 2(14)

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