Under the Income-tax Act, 2025, the surplus arising on the sale of household furniture held by an…

Section 2(22) of the Income-tax Act, 2025 (formerly s.2(14) of the Income-tax Act, 1961) excludes 'personal effects' from 'capital asset', and Explanation (B) to that clause defines personal effects as movable property, including wearing apparel and furniture, held for personal use by the assessee or any family member dependent on him, other than jewellery, archaeological collections, drawings, paintings, sculptures and works of art. Household furniture held for personal use is therefore not a capital asset, no capital gain arises on its sale, and the surplus is a capital receipt that is not taxable. It is not business income, because the furniture is not held for any business, and it is not 'Income from other sources', which covers only income not excluded from total income.