Define capital assets as per Income Tax Act, 1961.

'Capital asset' is defined under section 2(14) of the Income-tax Act, 1961 as, (a) Property of any kind held by an assessee, whether or not connected with his business or profession; (b) Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under Securities and Exchange Board of India Act, 1992. But does not include the following: Any stock in trade (Other than the securities referred to in sub-clause (b)), consumables stores or raw materials held for the purpose of his business or profession Personal effect Agricultural land in India, which is not an urban agricultural land. In other words, it must be rural agricultural land.