Profit on sales of membership liable for capital gain

This query is : Resolved

Monika (Querist)
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27 March 2019 One of my client has sold the membership of the club, so just wanted to know whether membership of club is considered as capital asset and whether any profit arising on the same is liable for capital gain.

Thanking you in advance.

Rajesh Kumar

Rajesh Kumar (Expert)
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29 March 2019 Club membership may be treated as personal effects of a person, and hence excluded from the definition of Capital asset- Section 2(14)(b)(ii) of the Income Tax Act. In that case tax shall not be payable on such capital gain.