Which one of the following is NOT a capital asset under section 2(14)?
AAgricultural land situated within municipal limits
BRural agricultural land situated in India
CJewellery held by the assessee for personal use
DUnlisted debentures of an Indian company
Answer & Solution
Correct answer: B. Rural agricultural land situated in India
1. Section 2(14) defines a capital asset as property of any kind, and then lists specific exclusions.
2. Rural agricultural land in India is one of the listed exclusions, so its transfer is outside the capital gains net.
3. Urban (municipal-limit) agricultural land does not enjoy the exclusion, and jewellery is expressly carved out of the personal-effects exclusion, so both remain capital assets; unlisted debentures are ordinary capital assets.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 4 Capital Gains, PDF p. 7_
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