Which income to classify??

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This query is : Resolved

Abhishek Kumar (Querist)

11 May 2014 Dear Experts,
If i sell Silver Utensils and earn Gains..Shall i classify it as Income from Other Sources..

Pls clarify !!!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

11 May 2014 Taxable under the head Profits and Gains of business or profession

Abhishek Kumar

Abhishek Kumar (Querist)

11 May 2014 its not my business..it was my personal asset

Ashwani Narnoli

Ashwani Narnoli (Expert)

11 May 2014 it depends upon the quantum of sale, whether it is treated as capital gain or pgbp

Nikhil Kaushik

Nikhil Kaushik (Expert)

11 May 2014 as you said you are not running a business for the same and have only sold the personal silver assets, it will be covered under capital gains.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

11 May 2014 If its your personal assets then irrespective of Quantum it is taxable under the capital gain.

CA Shashank Jain

CA Shashank Jain (Expert)

27 May 2014 As per the IT Act, 1961 - A capital asset does not include personal effects of movable nature (which in this case is silver utensils), hence silver utensils is not a capital asset. Also, it is clarified by you that it is your personal asset and not used for business purpose. Hence the receipts from sale of silver utensils would be a capital receipt and will not be taxable in your hands.

Nikhil Kaushik

Nikhil Kaushik (Expert)

27 May 2014 shashank..that depends on whether it is being held for personal use or not.

while there are cases where judgment went in assessee's favor, there are other judgments which went against like Ramnathan Chettiar u/s. CIT 152 ITR 493 (Mad)

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