14 June 2013
Does capital contribution made by the assessee in the partnership firm considered as property of the assessee for sec. 2(14) of the income tax act, 1961
"capital asset" means property42 of any kind held by an assessee, whether or not connected with his business or profession, but does not include— (i) any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession ; 43[(ii) personal effects44, that is to say, movable property (including wearing apparel and furniture) held for personal use44 by the assessee or any member of his family dependent on him, but excludes— (a) jewellery; (b) archaeological collections; (c) drawings; (d) paintings; (e) sculptures; or (f) any work of art. Explanation.—For the purposes of this sub-clause, "jewellery" includes— (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; (b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;]
Querist :
Anonymous
Querist :
Anonymous
(Querist)
18 June 2013
Sorry, i didnt got ur point. The Sec 2(14) given only three exceptions, my point was if we invest in Trust or Company, etc. then the shares or units we receive is considered as property, the capital contribution is not considered as property since partnership firm is not a seperate legal entity