Capital asset means [Sec. 2(14)]-
Property of any kind held by the
assessee, whether or not connected with his business or profession, but does
not include:
a)
any stock-in-trade, consumable stores or raw
materials held for the purposes of his business or profession as these will be
taxed under the head "profits and gains of business or profession";
b)
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. However, the
following assets shall not be treated as personal effects though these assets
are moveable and may be held for personal use:
i.
jewellery;
ii.
archaeological collections;
iii.
drawings;
iv.
paintings;
v.
sculptures; or
vi.
any work of art.
c)
Agricultural land in India, which is not an
urban agricultural land. In other words, it must be a rural agricultural land;