3. WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS” USED IN THE INCOME TA

3. WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS”
USED IN THE INCOME TAX ACT? WHAT ARE THE RULES REGARDING
EXEMPTION OF CAPITAL GAINS.

Question Posted / jayanta kr. das

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3. WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS” USED IN THE INCOME TAX ACT? WHAT ARE THE ..

Answer / ameet

A capital gain is a profit that results from investments
into a capital asset, such as stock, bonds or real estate,
which exceeds the purchase price. It is the difference
between a higher selling price and a lower purchase price
resulting in a financial gain for a seller.
As per AY 2008-09 Dividends that are distributed attract a
tax of 15 per cent. Short term capital gains attract a tax
of 10 per cent under Section 111A. There is merit in
equating the rates and hence increased the rate of tax on
short term capital gains under Section 111A and Section
115AD to 15 per cent. This encourages investors to stay
invested for a longer term.

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3. WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS” USED IN THE INCOME TAX ACT? WHAT ARE THE ..

Answer / srinivas annavarapu

A capital gain is a profit made out of selling a non-
inventory capital asset like Land & buildings, bonds,
stocks etc.

In India longterm capital gains (equity held for more than
one year are exempted from tax if they are sold through a
recognised stock exchange and STT is paid on the sale.

and short term capital gains are taxed at 15%(equity) and
can be reduced against short term capital loss and others
are taxed at the same rate as any other income.

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3. WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS” USED IN THE INCOME TAX ACT? WHAT ARE THE ..

Answer / nara

The amount by which an asset's selling price exceeds its
initial purchase price.

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2 No

3. WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS” USED IN THE INCOME TAX ACT? WHAT ARE THE ..

Answer / madhu

Capital gains are the gains made by investing in stock
markets

capital gains are normally taxable at a rate of 30%

Is This Answer Correct ?

3 Yes

5 No

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