Introduction - Basics

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