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capital asset

Shelly (student) (95 Points)

19 July 2018

diamond sewn into sandals is a capital asset or not?

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Anjali P Nair (ACA,ACMA) (582 Points)
Replied 19 July 2018

Yes it is a capital asset as per section 2(14) of Income Tax Act 1961.

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.

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Shelly (student) (95 Points)
Replied 19 July 2018

but it is not a wearing apparel?

Anjali P Nair (ACA,ACMA) (582 Points)
Replied 19 July 2018

Yes It is a capital asset.

(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;