Capital Gains

Section 2(14) – Definition of Capital Asset

Property of any kind (whether tangible or not)

held by an assessee

whether or not

connected with his business or profession

but does not include

(i)           any stock-in-trade, consumables or raw materials

(ii)         personal effects held for personal use

           by the assessee or any member of his family dependent on him(iii)       Agriculture land situated in RURAL AREA

(iv)        Gold Deposit Bonds issued under Gold Deposit Scheme, 1999

Personal effects means Moveable Property Including wearing apparel and furniture Excluding jewellery

The Guiding factor whether an article constitute personal effect is in the nature of the article

Asset                           Personal Effect           Chargeable to Tax

Car                                       Yes                                  No

House property                     No                                 Yes

Silver utensils                       Yes                                 No

Gold utensils                         No                                 Yes

H.H. MAHARAJA RANA HEMANT SINGH JI (SC)

Silver Coins used in puja are chargeable to capital gains as only those effects can be legitimately be said to be personal which pertains to the assessee’s person.

Hope u satisfy with the answer

 Personal Movable assets(such as furniture, utinsils, vehicles etc) are expressly excluded from the definition of Capital Assets u/s 2(14). So they cant be taxed under the head of income frm C.G.

the Exceptions to the above are, jewellery, archeological collections, drawings & paintings, sculptures, any work of art. SO, these assets, although personal in nature come under the definition of Capital Assets & their transfer will attract capital gains tax...

Thank You Mr. Rajeev & Jeet.

Thank u for the answer u have rovided for both

T.S.Mohana harish, harish_ts1984 @ yahoo.com