Capital gain

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sumit (Querist)
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18 April 2012 If Katrina Kaif sale her slipper which is valued at Rs 1 crore as the slipper is studded with diamond. Is the gain on sale taxable under Capital Gain?

CA Prasanna

CA Prasanna (Expert)
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18 April 2012 Hi Sumit,

Being a CA student, if you can go through clause(ii) of definition of capital asset u/s 2(14) which states as:

" personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use44 by the assessee or any member of his family dependent on him, but excludes—

(a) jewellery;

(b) archaeological collections;

(c) drawings;

(d) paintings;

(e) sculptures; or

(f) any work of art.

Explanation.—For the purposes of this sub-clause, “jewellery” includes—

(a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel;

(b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel "

I hope the definition is self elxplanatory and you will get answer of your question.

All the best!!

Regards

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