26 March 2012
Dear sir my name is kumar.pursuing c.s, here my doubt is what is capital gain?short term and long term capital gains?give breif examples?accordence with IT act 1961.
27 March 2012
Capital Gain is a gain arised from the transfer of Capital Assets.
for instance a commercial property is a capital asset when assess trf it more than cost of acquisiton it leads to Capital gain.
short term or long term is determined on the basis of period of holding. if capital assest is held of rmore than 3 yrs / 1 yr (as the case may be) it leads to long term Cap gain if trfd before this period then it leads to Short term Gain.
27 March 2012
I agree with the expert but for long term capital gains you can avail the benefit of indexation and the appreciable assets are always produces short term capital gain unless the selling price is more than the original cost.
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