Movable property held for personal use is generally excluded from the definition of capital asset. Which of the following personal-use items remains a capital asset despite this exclusion?
AA refrigerator used at home
BA motor car used personally
CFurniture used in the residence
DJewellery worn by the assessee
Answer & Solution
Correct answer: D. Jewellery worn by the assessee
1. Section 2(14) excludes personal effects, i.e. movable property held for personal use of the assessee or dependent family members.
2. The exclusion itself carves out jewellery, archaeological collections, drawings, paintings, sculptures and any work of art — these stay capital assets even when held for personal use.
3. A refrigerator, car or furniture used personally are true personal effects, so their transfer yields no capital gains; jewellery does.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 4 Capital Gains, PDF p. 6_
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