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Capital Gains

Expert Insights on Capital Gains

At ARKC Advisors, we specialize in providing comprehensive advice on capital gains taxation. Our goal is to simplify the complexities of capital gains for you, ensuring you navigate the regulations effectively and maximize your financial benefits. Below, we break down the essential aspects of capital gains, from asset classifications to tax implications and strategic exemptions.

What Are Capital Gains?

Defining Capital Gains

Capital gains are the profits or gains we realize from the sale or transfer of a capital asset. A capital asset can be any property held by an individual, whether or not connected to their business or professional activities. However, capital assets do not include:

Stock-in-trade, consumable stores, or raw materials held for business.

Personal effects, such as movable property for personal use, excluding jewelry, art, or collectibles.

Agricultural land in India, subject to specific conditions.

Certain government bonds.

Types of Capital Assets

We classify capital assets into short-term and long-term based on the holding period, which directly affects the taxation of capital gains:

Short-Term Capital Assets: Assets held for 36 months or less (12 months for listed shares, securities, and mutual funds).

Long-Term Capital Assets: Assets held for more than 36 months (or 12 months for specified shares and securities).List item