It has all detailed info on capital gains,how to calculate capital gains etc....

3.  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.
 Capital gains may refer to "investment income" that arises in relation to real assets such
as property; financial assets such as shares/stocks or bonds; and intangible assets.

4. NAME AMOUNT(RS.)
Full Value of Consideration Xxx
(Less) Expenditure Incurred wholly exclusively in
connection with such transfer/Sale
Xxx
(less) Cost of Acquisition Xxx
(less) Cost of improvement Xxx
Gross Short Term Capital Gain Xxx
(less) Exemption u/s 54B/54D/54G/54GA Xxx
Net Short Term Capital Gain Xxx

5. NAME AMOUNT(RS.)
Full Value of Consideration Xxx
(less) Expenditure Incurred wholly exclusively in
connection with such transfer/Sale.
Xxx
(less) Indexed Cost of Acquisition Xxx
(less) Indexed Cost of Improvement Xxx
Gross Long Term Capital Gains Xxx
(less) Exemption u/s
54/54B/54D/54EC/54ED/54F/54G
Xxx
Net Long Term Capital Gains Xxx

6.  1) MR. Kantilal , A manager of public limited company receiving remuneration had a
personal car which he bought for Rs.70,000/- in 1993. He sold it during the previous
year for Rs. 65,000 and claim the difference as allowance loss

7. Soln:
Personal effects are excluded from the definition of capital assets under section
2(14). Personal car owned by Mr. Kantilal falls within the category of personal
effects.
Ie. Personal car is not a capital asset and since there is no transfer of capital asset so
there is no chargeability to capital gains.

8.  2) Mrs. Aishwarya a lady afficient means purchase a diamond necklace in 1990 for
Rs. 1,00,000 which she sold for Rs. 4,50,000 during the previous year. She claimed
the surplus are not taxable

9. Soln:
Personal effects are excluded from the definition of capital assets under section
2(14).
However jewellery has been specifically excluded from the meaning of personal asset.
Therefore any item of jewellery will rank as a capital asset. Section 45(1) is
applicable and surplus arising on sale of diamond necklace is chargeable to tax as
capital gains.

10. The provision of capital gains
 The following criteria has to be followed
1) The existence of capital asset
2) The transfer of such asset
3) Profit and gains from transfer of such asset.

11. Question 3: Mr. Ram had purchased a house property in Dadar on
31/1/10.He sold the House property to Mr. Shyam on 23/1/13.

12. Solution : Mr. Ram purchased a House property on 31/1/10. He sold the
house property on 23/1/13 thus he sold the capital asset for a total period
of 35 months & 23 days. If a capital asset other than shares of the company
is held by the assessee for the period not more than 36 months such an
asset is called short term capital asset & gain arising out of such sale is
termed as short term capital gain.

13. Question 4 : Mr. Vinit purchased shares of M/S Reliance Industries on
10/1/11. He sold the share on 9/7/12.

14. Solution : Mr. Vinit purchased the shares on 10/1/11 & sold the shares on
9/7/12. Thus he held the capital asset for 18 months if a capital asset being
shares in Indian company held assessee for the period of more than 12
months such an asset is called as long term capital asset & any gain out of
such sale is termed as long term capital gain.

15. 5. Mrs. Sarita purchased house property for Rs.200000 in the
year 1969-70. Following expenses were incurred for the house
property:
1.Cost of construction in the year 1977-78 Rs.150000.
2.Cost of construction of first floor in 1984-85 Rs.350000.
3.Alteration to house property in 1993-94 Rs.300000.
4. Fair market value of the property on 1/4/81 i.e
Rs.500000.the house property is sold to Mr.Ashok in the PY
2012-13 for Rs.9500000.
5.Expenses incurred on transfer during PY is Rs.5000.
Compute capital gain for AY 2013-14.
CII (1981-82) 100
(1984-85) 125
(1993-94) 244
(2012-13) 852

16. Solution:
COMPUTATION OF CAPITAL GAINS
Sale consideration 9500000
(-) indexed cost of acquisition
[500000 x 852/100] 4260000
(-) indexed cost of improvement
[350000 x 852/125] 2385600
[300000 x 852/244] 1047541
(-) transfer expenses 5000
LTCG 1801859

17. 6. Mr.Kasad purchased one bungalow for Rs.51000 in 1963-64. He
constructed to two additional rooms in the year 1972-73 by spending
Rs.100000. He dies on 1st October ,1979 and as per his will the house
was transferred to his son Mr.Firdosh. Mr.Firdosh spends Rs.35000
for repairs in the year 1980-81 and constructs an additional room in
the year 1985-86 for Rs.40000. Mr.Firdosh sells the above house
property for Rs.2500000 on 30/3/13. brokerage being paid Rs.11001.
The fair market value of property as on 1/4/81 is Rs.200000. Find
out the amount of capital gain taxable in the hands of Mr.Firdosh
for AY 13-14.
CII (1981-82) 100
(1985-86) 133
(2012-13) 852

18. Solution: