What are the capital asset exempt from capital gain taxes?
The following assets are, however, excluded from the definition of “capital assets”:
- any stock-in-trade, consumable stores or raw material held for the purpose of business or profession;
- personal effects of the assessee, that is to say, movable property including wearing apparel and furniture held for his personal use or for the use of any member of his family dependent upon him (from the assessment year 1973-74, jewellery is treated as a capital asset even though it is meant for personal use of the assessee);
- agricultural land in India provided it is not situated—
- in any area within the jurisdiction of a municipality or a cantonment board having a population of 10,000 or more; or
- in any notified area;
- 6½ per cent Gold Bonds, 1977 or 7 per cent Gold Bonds, 1980 or National Defence Gold Bonds, 1980 issued by the Central Government;
- Special Bearer Bonds, 1991; and
- Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999.