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What do you understand by the Term Capital Gains Used in
the Income Tax Act ? What are the rules regarding exemption
of Capital Gains ?
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Answer / raghavendrabellambary
A capital gain is a profit that results from a disposition
of a capital asset, such as stock, bond or real estate,
where the amount realized on the disposition exceeds the
purchase price. The gain is the difference between a higher
selling price and a lower purchase price. Conversely, a
capital loss arises if the proceeds from the sale of a
capital asset are less than the purchase price.
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