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what are capital gains

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 Capital Gains

A capital receipt is not liable to tax, unless specifically provided in the Act, whereas, a revenue receipt is not exempted, unless specifically provided in the Act.

Further, capital receipts are to be charged to tax under the head “Capital Gains” and revenue receipts are taxable under other heads.

Online Exam in Capital Gains for CA Intermediate, CA IPCC, ICSI and CMA Exams.

Capital Gains - Test 1

Subject :- Taxation

Chapter :- Capital Gains  – Test 1

Questions :- 30

 

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Capital gain shall be taxable in the previous year in which the asset is transferred.

Capital asset means –
● any kind of property held by an assessee, whether or not in connection with his business or profession;

Transfer in relation to a capital asset includes:
(a) Sale, Exchange & Relinquishment of the asset;
(b) Extinguishment of any right in an asset;
(c) Compulsory acquisition of an asset under any law;
(d) Conversion of asset into stock-in-trade by the owner;
(e) Any transaction of immovable property u/s 53A of the Transfer of Property Act, 1882;
(f) Any transaction which has the effect of transferring or enabling the enjoyment of any immovable property.
(g) Maturity or redemption of a zero coupon bond

COMPUTATION OF CAPITAL GAINS [SEC. 48]
Short-term Capital Gain means the gain arising on transfer of short-term capital asset [Sec. 2(42B)].
Long-term Capital Gain means the gain arising on transfer of long-term capital asset [Sec. 2(29B)].