Question

Which of the following is not included in the Capital Asset under Section 2 (14) of Income Tax Act,

• A. Any stock in Trade
• B. Special Bearer Bonds 1991 issued by Central Government
• C. (a) and (b)
• D. None of the above

Hint:

Stock in trade is not included as a capital asset under Section 2 (14) of the Income Tax Act.

Answer 1

The Correct Option is A

Step 1: Understanding Capital Assets under Income Tax Act.
According to Section 2 (14) of the Income Tax Act, capital assets include property, stocks, and bonds, but do not include stock in trade. Stock in trade is treated differently for tax purposes and is not considered a capital asset.

Step 2: Explanation of Other Options.
- (b) Special Bearer Bonds are included as capital assets under this section. - (c) This option is incorrect as only stock in trade is excluded, and special bearer bonds are included.

Step 3: Conclusion.
Stock in trade is not considered a capital asset under Section 2 (14) of the Income Tax Act.