Capital gains on sale of animal

Capital asset means a property of any kind held by the assessee except: -

a) Stock in trade, consumable stores or raw materials held for the purpose of business or profession.

(b) Personal effects, being moveable property (excluding Jewellery, archaeological collections, drawings, paintings, sculptures or any other work of art) held for personal use.

(c) Agricultural land, except land situated within or in area upto 8 kms, from a municipality, municipal corporation, notified area committee, town committee or a cantonment board with population of at least 10,000.

(d) Six and half percent Gold Bonds, National Defence Gold Bonds and Special Bearer Bonds.

So, you will find that the animals are not excluded from above list(except used as stock-in-trade) , so naturally capital gain will arise...

no capital gain on sale of animals as purchase itself u can not treat them as capital asset as live stock is exempted from definition of capital asset.so sale of animal can be treated as business income