Period of a Capital Asset
Income Tax Act taxability of gain on sale of a Capital Asset is decided
on the basis
of holding period of that asset. Holding period of an asset simply
means the time period for which that asset was the property of the
The period from the date of purchase/owning the asset till the
sale/transfer of that asset.
Explanation 1 to Section 2(42A) of the Income Tax Act and Rule 8AA of
the Income Tax Rules provides for calculating holding period of a
capital asset in different scenarios. We have not covered those unique
cases here just to keep it simple.
If you have a unique situation to determine period of holding of your
capital asset you may write to us at email@example.com
Taxability of Capital Gains
Calculation of Fair Market Value of Property purchased before April 2001
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