What is a Capital Asset
(As per Section 2(14) of Income Tax Act)
- Any Gain or profit on sale of a Capital Asset is capital gain and should be charged to Income Tax
- So it becomes important to understand the term
capital asset.. Profit / gain on sale of assets which are not
capital assets are not taxable.
- Following are different assets defined as capital assets in the Income Tax Act:
- House Property, Shares and Mutual Funds are most commonly held and known Capital Assets
- Jewellery even though purchased for personal use is a Capital Asset.
- Gold ETF is a Capital Asset.
- Personal belongings like Furniture and Vehicles are not capital assets and there is no tax on profit on sale of these items.
- Agricultural land in rural area is not
a capital asset and hence profit on sale of agricultural land is not a
capital gain & so not taxable.
Some other Links:
- Stock in trade, consumables or raw material used in business/profession
What will be status of a person born on 1st April? Will he/she be treated as senior Citizen for particular Assessment Year?
Read in detail the applicable Tax Rates
Deduction for Medical Insurance Premium u/s 80D
Deduction u/s 80DDB for expenditure on specified desease for senior citizens
₹ 50000 as deduction of interest from deposits u/ 80TTB for Senior Citizens