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Income tax return (ITR) filing: According to the provisions of the Income Tax Act, any profit earned from the sale of an asset is termed as capital gains and is taxable. Here's all you need to know about it
Any profit or gain that arises from the sale of a ‘capital asset’ comes under the category ‘income’, and hence individuals are required to pay tax for that amount in the year. This is called capital gains tax and it needs to be taken care of while filing income tax return (ITR).
The two types of capital gains tax are — short-term capital gains tax (STCG) and long-term capital gains tax (LTCG).
Now, let's understand the calculation of tax on short term and long term gain from sale of assets: