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Art of matter on FM's canvas

Dated: 01-03-2007
Source: Times of India



For the first time in 60 years, art has been mentioned in the Budget. The FM has expanded the tax base of capital gains to include certain works of art-archeological collections, drawings, paintings, sculptures.
On the face of it, that should seem to be bad news. After all, art has till now been treated as personal effects, which is not liable for taxation. The problem is taxmen have blithely been raising demands on art collectors, causing much confusion and heartburn. The new provision thus introduces some much-needed clarity regarding treatment of art sales.
Not surprisingly, promoters of the great Indian art mart are hailing this as a positive step that will finally provide some clarity on the subject.



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