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A “Capital Asset” means –

A) Property of Any kind held by the assessee, whether or not connected with the business or profession.

B) Any securities held by a Foreign Institutional Investor.

C) Any unit linked insurance policy to which exemption under clause (10D) of section 10 does not apply

Please Note: In the definition of the CAPITAL ASSESTS following items will not be include

1. Stock in Trade (Other than the securities)
2. Any movable personal effects used by the assessee himself of dependent family member for personal purpose. ( Which Excludes the the following )
   • Jewellery
   • Drawings
   • Paintings
   • Sculpture
   • Archaeological Collections
   • any other work of Art
3. Rural Agricultural Land in India
4. Gold Bonds or National Defence Gold Bonds, 1980, issued by the Central Government
5. Special Bearer Bonds, 1991, issued by the Central Government
6. Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or deposit certificates issued under the Gold Monetisation Scheme, 2015 notified by the Central Government.

Example of the uses for the Personal purpose

1. T.V./Car/Mobile/Washing Machine, etc – NOT a Capital Asset (Capital Gain is not Applicable)
2. Jewellery/Drawing/Painting etc – Capital Asset (Capital Gain is Applicable)