Income from Capital Gains for CFP-1 AY 2017-2018

Any profit or gain arising from the transfer of a capital asset during the Previous Year(PY) is chargeable to tax under the head ‘Capital Gains’ in the immediately following Assessment Year(AY) i.e. if you made gains in 2010-2011 (PY), it will be chargeable to tax in 2011-12(AY).

Liability under this head arises when certain conditions are fulfilled:

Now lets understand the how act defines Capital Asset:

Capital asset means property of any kind held by assessee, whether or not connected with his business or profession.

• However following assets are excluded:

There is something interesting about Jewellery and capital gains. As per the Act,

• Jewellery is a capital asset
• Jewellery for this purpose includes the following:
  • Ornaments made of silver, gold, platinum or any other precious metal or any alloy containing one or more such precious metals whether or not containing any precious or semi-precious stone and whether or not worked or sewn in to wearing apparel.
  • Example: You must have seen Salman Khan wearing a tie with expensive diamonds. For taxation purpose that tie is considered as capital asset.
  • Example: Somebody melts gold and silver and makes vessels out of it. All those vessels are also considered as capital assets.
  • Precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel
  • Example: Let say somebody makes sofa set which has precious stones set in it. For tax purpose that sofa set is a capital asset.

Types of Capital Assets:

Short term capital asset (STCA): STCA  means a capital asset held by an assessee for not more than 36 months, immediately prior to its date of transfer.

Long term capital asset (STCA): capital asset is held for more than 36 months, then it is known as LTCA

There are some special cases where the holding period is to be considers as 12 months instead od 36 months in the above classification i.e.

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The Ultimate Combination of Philately and Numismatics

You must have heard the word, ‘synergy’. Which means, the working together of two things to produce an effect greater than the sum of their individual effects. So, what if Philately and Numismatics are clubbed together in your collection. As I am committed to give you the most innovative ideas, today I am giving you one synergistic idea. doesn’t it sound tempting? Obviously. See this:

The Stamp:

The FDC:

The Brochure:

The Coin:

Everything which I have displayed is commemorating 1000 years of Brihadeeswarar Temple and that is the ultimate and the most interesting part of it. Some of the private sellers are quoting a price very close to Rs.5000 for all the items. One more opportunity which you can have is of collecting the commemorative stamps and Rs.150 coin of Rabindranath Tagore but it is tough to get so catch it if you can. You must have enjoyed the The Ultimate Combination of Philately and Numismatics. Keep Collecting!!!