Capital Transactions

Capital transactions in the Indian market involve the purchase, sale, or transfer of capital assets such as real estate, stocks, or investments. These transactions are liable to Capital Gains Tax under the Income Tax Act of 1961, depending on the difference between the purchase and selling prices. Short-term and long-term capital gains are taxed differently. To avoid tax obligations, businesses and individuals must ensure that they follow reporting rules, exemptions, and adequate paperwork.