Example 1

Asset Purchased for 20 lacs

It is sold after 2 months for 30 lacs

Profit on Sale of Assets=30-20=10 lacs

 

Example 2

Asset Purchased for 20 lacs

It is sold after 2 months for 18 lacs

Loss on Sale of Asset=20-18=2 lacs

 

This Profit or loss on Sale of Asset is taxable under Capital Gains

However not all assets covered under Capital Gains

Also Capital Gain is levied not only on Sale but on certain other transactions also.

 

Lets start by understanding the Charging Section first

  1. Income Tax
  2. Income from Capital Gains
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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