Capital asset definition clarifies inclusions and exclusions under income tax law affecting securities and specified bonds and agricultural land. The definition of capital asset treats property of any kind held by an assessee as a capital asset, includes securities held by foreign institutional investors and certain unit linked insurance policies, and sets out exclusions: stock-in-trade and business inventories, personal effects (with jewellery and specified works of art excluded from that exclusion), agricultural land subject to municipal and aerial-distance criteria, and specified government-issued gold and bearer instruments.