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Capital gains

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NISHA AGARWAL

Chartered Accountant

454 Points Posted on 28 December 2012

CAN ANYONE PLEASE EXPLAIN THE MEANING OF THE FOLLOWING LINE:

" ONLY THOSE EFFECTS CAN BE LEGITIMATELY BE SAID TO BE PERSONAL WHICH PERTAIN TO THE ASSESSEE'S PERSON. IN OTHER WORDS , AN INTIMATE CONNECTION BETWEEN THE EFFECT AND THE PERSON OF THE ASSESSEE MUST BE SHOWN TO EXIST TO RENDER THEM "PERSONAL EFFECTS".

( IN CASE OF H.H. MAHARAJA RANA HEMANT SINGHJI )

Replies (2)

Saurabh Maheshwari

B.com ACA

5923 Points Posted on 28 December 2012

It means that for a article or property or anything to be a personal effect .....the assessee has to prove that the same is purely personal effect ....i.e . the personal belongingness of the article or property should be first and foremost of the assesssee and not of any other person .

For Example- PC is used by a person for his personal work is personal effect for him .....But afterwards he gift the same to his son ....then that PC will not be a personal effec for the son.

That alll I guess and not sure.

Aayush

Student

26 Points Posted on 11 January 2013

Ya personal effect means assessee should use it for his own personal purpose, like car, clothes etc. But if such asset are used for business purpose, they cannot be said to be a personal effect. Also jewellery is one such asset which although is d most intimately used, still its nt a personal effect