Meaning of Capital Asset - (New) Section 2(22) / (old) Section 2(14)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on; (ii) personal effects; "Personal effects" means any movable property (including wearing apparel and furniture) held for personal use by the assessee or any family member dependent on him, but excludes - (I) jewellery, which includes-- (a) ornaments made of gold, silver, platinum, or any other precious metal or any alloy of such precious metals, with or without precious or semi-precious stones, and whether or not worked or sewn into any wearing apparel; or (b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel; or (II) archaeological collections; or (III) drawings; or (IV) paintings; or (V) sculptures; or (VI) any work of art; (iii) agricultural land in India, not being a land situated-- (A) in any area comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ions made under • the Securities and Exchange Board of India Act, 1992 or • the International Financial Services Centres Authority Act, 2019; • Any Unit linked policy to which exemption u/s 10(10D) does not apply Upto 31.03.2026 • Property of any kind held by an assessee, whether or not connected with his business or profession; • Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992; • Any Unit linked policy to which exemption u/s 10(10D) does not apply on account of the applicability of the fourth and fifth proviso thereof  Exclusion of following asset from the Meaning of Capital Asset • Any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession • Personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes- • Jewellery • Archaeological collections â....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by Central Government Other Point • Meaning of transfer in relation to Capital Asset define under Section 2(47) [ Refer this chapter ] • "Property" includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever. [ w.r.e.f. 01.04.1962]. Such an Explanation was inserted by the Finance Act, 2012 with the objective of overriding the ruling of the Supreme Court in Vodafone International Holdings BV. Versus Union of India & Anr. 2012 (1) TMI 52 - Supreme Court. Example Sr. No. Area Shortest aerial distance from the local limits of a municipality or cantonment board referred to in Item (a) Population according to the last preceding census of which the relevant figures have been published before the first  day of the previous year. Is the land situated in this area a capital assets? (i) A  1 KMs 9,000 No (ii) B 1.5 KMs  12,000 Yes (iii) C 2 KMs 11,00,000 Yes (iv) D 3 KMs 80,000 No (v) E 4 KMs&n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....A High Court  & Instruction No. 1014/CBDT dated 30.09.1976 ] • Loose diamonds are not 'personal effects' exempt from the definition of capital asset and are liable to capital gains tax. [ Commissioner Of Income-Tax, Madras Versus Smt. Saroj Goenka 1981 (9) TMI 36 - MADRAS High Court ] • The assessee purchased 1172 goats out of which it sold 975 goats. The assessee is an HUF and not an individual. Even considering that intimacy existed with the animals, it can be practically possible with anybody who is having animals as pets and can have intimacy and can keep it as personal effect only a handful number of them. Assessing Officer was justified in holding that goats are not personal effects in the light of the aforesaid Apex Court decision particularly and concluded that the Assessing Officer was justified in computing short-term capital gains on the sale of goats. [ V. Kalirajan. Versus Income-Tax Officer 2000 (1) TMI 162 - ITAT MADRAS-A ] • Whether heirloom jewellery constitutes 'personal effects' within the meaning of section 2(14) of the Income-tax Act, 1961, thereby exempting it from t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lture Land". [ MS Srinivasa Naicker And Others Versus Income-Tax Officer. 2007 (1) TMI 149 - MADRAS High Court ] • The land was sold as an agricultural land and in fact, what was sold was agriculture land. What was the intention of the purchaser cannot be the determinative factor to treat the profit earned by the assessee on sale of agriculture land as business income. Similarly, merely because for whatever reason, the assessee has earned sufficient huge amount of profit also cannot be a ground to treat the profit earned by the assessee on sale of agriculture land as business income. [ Principal Commissioner of Income Tax Rjakot-1 Vs. Heenaben Bhadresh Mehta 2018 (8) TMI 987 - Gujarat HC ] • Whether the contribution of land by the assessee as capital in the partnership firm amounts to transfer of the asset within the meaning of section 2(47) of the Income-tax Act, 1961. [ Sunil Siddharthbhai and Kartikeya V. Sarabhai Versus Commissioner of Income-Tax, Ahmedabad 1985 (9) TMI 7 - Supreme Court ] • Whether the amount received by the assessee on retirement from the firm was chargeable to tax as business profit or capital gains. [ Co....