Section 2(14) - Definition of Capital Asset

• The following are included in the definition of capital asset:

1. Property of any kind (movable/immovable/tangible/intangible) held by the assessee whether or not connected with his business or profession.
2. Any security held by a Foreign Institutional Investor (FII) whether held as stock in trade or not in accordance with SEBI Act, 1992.
3. Any ULIP (Unit Linked Insurance Policy) to which exemption under section [10(10D)] does not apply on account of 4th and 5th proviso of section 10(10D).
4. Following Personal effects (movable property held for personal use):

• Jewellery
• Archaeological Collections
• Drawings
• Paintings
• Scupltures
• Any other work of art.

• But it does not include the following items:

1. Stock in trade, consumable stores or raw materials held for business or profession.
2. Personal Effects held by assessee or any dependent family member other than personal effects mentioned above.
3. Rural agriculture land
4. Gold Deposit Bonds or deposit certificates.
5. Special Bearer Bonds, 1991 issued by Central Government
6. 6.5% Gold Bonds 1977, 7% Gold Bonds 1980 or National Defense Bonds 1980 issued by the Central Government. 

• For the purposes of this section:

1. Jewellery includes
• ornaments made of gold, silver, platinum or any other precious metal or an alloy containing one or more of such precious metals whether or not containing any precious or semi precious stone 
• precious or semi precious stones
2. Property includes any right in or in relation to an Indian company, including right of management and control or any other right whatsoever.
3. Rural Agriculture land means a land which is not situated in urban area. Urban area means an
• area which is comprised within the jurisdiction of a municipality, or a cantonment board having population of 10,000 or more.
                                                                        AND
• area within the distance, measured aerially -

• not being more than 2 kms from the local limits of such municipality or cantonment board if population is more than 10,000 but upto 1,00,000.
• not being more than 6 kms from the local limits of such municipality or cantonment board if population is more than 100,000 but upto 10,00,000.
• not being more than 8 kms from the local limits of such municipality or cantonment board if population is more than 10,00,000.