1) Stock In Trade :
If you are in business , you know what stock in trade is. Here government has excluded it from your capital asset in short on sell of it It will arise business income and such income will taxable under normal slab rate without attracting special tax rates under capital gain.
However if you are converting it into capital asset at any time and if any gain arise will get taxable under the head profit and gain from business or profession
💡 Here any foreign institutional investor held securities as stock in trade will be treated as capital assets in his hands
Personal Effects :
If word personal arises our Indian people becomes happier because what they have in their hands they treat it as their personal asset especially gold jewellery
You would get wondered after knowing that jewellery you are purchasing is excluded from the definition of personal assets
Personal assets means Movable Property but it Excludes
-> jewellery
-> Archaeological Collections
-> Drawings
-> Paintings
-> Sculptures
-> Any work of art
-> Any immovable property
On sale of all above capital assets you are liable for capital gain.
🚨 Remember all above given examples are not a personal assets hence capital gain is arises
We Will understand meaning of rural agricultural land in India in next post
“Till keep reading and make sharpen your knowledge!! “
Be Ready for Playing with tax
Plan tax on your own 