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Capital Gain is not charged on All types of Assets

It is applicable only on Certain assets called Capital Assets

 

Capital Assets include All assets except

  • Stock of Business*
  • Items of Personal nature which are movable like Personal Car/AC/Fridge etc
  • Agricultural land in rural area

 

However following are Capital Assets

  • Stock in trade of Foreign Instituitional investors (Foreign Companies who invest in Indian Stock Market)
  • Immoveable Property like House/Plot
  • Jewellery(Ornaments it made of gold silver, or precious stones) .
  • Agricultural land in Urban Area
  • Drawings, paintings, sculptures or any work of art.

Learn more

Example :-

State whether Capital Gain Applicable on following Yes / No
   
Sale of Jewellery by Housewife  
   
Sale of Jewellery by Jewellery Store  
   
Sale of Car by a Salaried Person  
   
Sale of Car used in Business  
   
Sale of Car by Car Showroom  
   
Sale of Personal Property   
   
Sale of Personal Painting  
   
Sale of Personal TV  
   
Sale of Personal Shares  
   

-a-

State whether Capital Gain Applicable on following Yes / No
   
Sale of Jewellery by Housewife Yes
   
Sale of Jewellery by Jewellery Store No 
   
Sale of Car by a Salaried Person No 
   
Sale of Car used in Business Yes 
   
Sale of Car by Car Showroom No 
   
Sale of Personal Property  Yes 
   
Sale of Personal Painting Yes 
   
Sale of Personal TV No 
   
Sale of Personal Shares Yes 
   

-ea-

  1. Practical Income Tax
  2. Important Points of Different Incomes
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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