Section 2(5): “capital asset” shall have the same meaning as assigned to it, from time to time, in the Income Tax Act, 1961, but the said expression shall not include jewelry held for personal use or property not connected with the business;
Capital asset defined under Sub-Section 14 of Section 2 of the Income Tax Act as given below:

1. Any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession ;
    

2. Personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes

   1. Jewellery; 

   2. Archaeological collections; 

   3. Drawings;

   4. Paintings;

   5. Sculptures; or 

   6. Any work of art.

   Explanation. For the purposes of this sub-clause, jewellery includes

   1. 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; 

   2. Precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;
        

3. Agricultural land in India, not being land situate

   1. In any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or

   2. In any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette ;
       

4. 6 per cent Gold Bonds, 1977,[or 7 per cent Gold Bonds, 1980,] [or National Defense Gold Bonds, 1980,] issued by the Central Government;
    

5. Special Bearer Bonds, 1991, issued by the Central Government;
    

6. Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government;

As per the definition the Act any asset to be qualified as capital asset the asset should be connected with the business and the definition specifically excludes jewellery held for personal use. From the combined reading of the definition in the Act and Income Tax Act, it may be observed that the capital asset (Excluding the above six) may include property of every di9scription, movable or immovable, fixed or circulating tangible or intangible, corporeal or non- corporeal provided they are connected with the business, corporeal means physical things like land, building, jewellery, shares, cars, etc. Non corporeal means assets like leasehold rights, copyrights, manufacturing license, rout permits of buses, tenancy rights etc.