Answer» Correct Answer - Option 4 : Capital Gain Tax
The correct answer is Capital Gain Tax. - Capital gains are the profits from the sale of an asset - shares of stock, a piece of land, a business - and generally are considered taxable income.
- Under the Indian Income Tax Act, capital gains tax in India need
- not be paid in case the individual inherits the property and there is no sale. However, if the person who has inherited the property decides to sell it, the tax will have to be paid on the income that has been generated from the sale. This is capital gain tax.
- Some of the examples of capital assets are jewellery, machinery, leasehold rights, trademarks, patents, vehicles, house property, building, and land.
- An asset held for a period of 36 months or less is a short-term capital asset.
- An asset that is held for more than 36 months is a long-term capital asset.
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