CAPITAL ASSETS: Possession of whatever kind including 1. ‘properties’ along with any rights or holdings in an Indian company, such as management or control rights or other rights. 2. An assessee’s possessions of any type. 3. All securities acquired by a foreign institutional investor who has made an investment in this kind of securities in compliance with the SEBI Act’s guidelines.
However, the following items will not be classified as capital assets.
- any kind of stocks
- clothing and furnishings reserved for private use
- Paintings/arts
- Jewelry
- Archaeological collections
- Farming land in India’s rural area
Aside from the ones listed above, there are a few others that aren’t listed but aren’t considered capital assets.
What is the difference between a short-term capital asset and a long-term capital asset?
A capital asset possessed by an assessee for less than 36 months is referred to as a short-term capital asset; a capital asset possessed for more than 36 months is considered a long-term capital asset.
What exactly is capital gain?
Capital Gains: Under the category “Capital Gains,” any profit or gain originating from the purchase or sale of a ‘capital asset’ is taxed.
