New Delhi, Aug. 21 -- If you make a profit by selling an asset, it it generally treated as a capital gain and income tax would be payable on such gains. However, what many people may not know is that proceeds from the sale of certain personal belongings, such as furniture, car, scooter or even a dress, are exempt from tax.

This is because of a specific provision in the income tax laws that provides an exemption for gains made on the sale of 'personal effects' by an individual. The term refers to a movable property held by a taxpayer for their or a dependent family member's personal or day-to-day use.

Personal items that can be sold without attracting any tax liability include clothing and apparel, furniture, crockery or utensils, and da...