Hi guys 👋 this Blog seeks to tax transaction of capital nature the game derived by a person on the selling of asset is taxed under this chapter we have understood in the last blog that the term gains means surplus are raising out isolated activities so rare transaction such as sale of house property or Jewellery will be taxable here section 41 basis of charge any gain arising from the transfer of capital affected during the previous year shall be chargeable to tags under this head after providing for exemption under section 54 the definition leads to 2 important terms transfer and Capital Asset before progressing into the blog let us understood both these terms section 2 under 14 Capital Asset property of any kind held by assassy whether used for the purpose of using or not however it is not included stock in trade this include raw material consumable stores stars and tools movable personal asset asset used for domestic purpose by the SSC it shell not include immovable property jewellery drawing painting culture and work of any are rural agricultural land located in a rural area the term rural is not directly defend law define what constitutes and urban area so we in for that rural areas one which is not a urban area to aspect or taken into consideration for the definition of an this distance from the municipality or Cantonment Board pollution population distance is measured a really for the population the last published census should be considered if the population is less than 1 lakh first two km will be considered an urban area beyond that it becomes a rural area if population is more than 1 lakh but less than 10 lakh people up to 6 km is considered as urban if there is 10 lakh people up to 8 km is considered gold Bond 6 and half percentage to 7 percentage or National Defence special bearer Bond gold deposit Bond issued under the scheme 1999 ornaments jewellery includes made of gold silver Platinum or any other facious matter or any alloy containing one or more of such precious metal whether or not containing any precious or semi precious stone and weather or not worked of into any wearing apparel precious on semi precious stone where or not set in any furniture utensil or other article or worked or when into any wearing apparel transfer include sale exchange or relingishment existing wishment of an asset conservation of asset into stock.
 

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