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
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.