As per Section 45
Any Profit or Gain
of Capital asset
is Taxable under Income from capital gains.
in year of Transfer
When exempt under Section 54/54B/54D etc.
- Capital Gain is applicable on Certain Assets only called Capital Asset (and not all assets)
- Capital Gain is applicable on TRANSFER (Transfer not only includes Sale of Asset but also some other things which we will discuss later)
- It is taxable in year Asset Transferred (Sold) and not purchased
- Profit includes loss Also,so there can be loss on Sale of Captal Assets
- Exemption of Capital Gain are mentioned in Section 54/54B/54D etc
Transfer+Capital Assets+ Not Exempt =Income/Loss from Capital Gain
Lets study these points in detail one by one