What is not included in the definition of Capital Asset?
While computing Income under the head Income from capital gains, the main thing to comprehend is the meaning of a capital Assets. Be that as it may, let us talk about specific capital assets which are not viewed as capital Assets. Under Section 2(14) following Assets have been uniquely excluded from the extent of the meaning of capital Assets:
- Any stock-in-Trade, Raw Materials, consumable stores held by any assessee for the reasons for his business or profession. It is to be noticed that any securities (other than stock in trade which isn’t held by a foreign institutional investor) held by a Foreign Institutional Investor which has invested or deposited in such securities in accordance with the regulations made under the Securities and Exchange Board of India (SEBI) Act, 1992 will not be treated as stock-in-trade
- Personal impacts (moveable property) including wearing apparel, engine vehicle, electrical appliances, refrigerator, cooler, furniture and so on; ornaments excluding jewellery, archeological collections, drawings, artworks or any art work held for personal use by the assessee or some other individual from his family dependent upon him.
- Agricultural Land in India-But the land should not be situated
- Within the restrictions of any municipality or cantonment board having a population 10,000 or more or
- Within distance estimated aerially (shortest flying distance) from any municipality or cantonment board as follows:
| Distance | Population of Muncipality/ Cantonment |
| within 2 kilometres within 6 kilometres within 8 kilometres | 10,001-1,00,000 1,00,001-10,00.000 More than 10,00,000 |
- 6% Gold Bonds, 1977, or 7 percent Gold Bonds, 1980, or National Defense Gold Bonds, 1980, gave by the Central Government;
- Special Bearer Bonds, 1991, gave by the Central Government ;
- Gold Deposit Bonds gave under the Gold Deposit Scheme, 1999 or deposit certificate gave under the Gold Monetization Scheme, 2015 notifies by the Central Government.
