Any profit earned from the sale of a capital asset is referred to as a capital gain. The category of income includes the profit that is made. As a result, the income that is received must be taxed. Long-term or short-term capital gains taxes are the types of taxes that are paid. Long-term and short-term gains are subject to taxes starting at 10% and 15%, respectively.
2) Indexation ValueThe purchase price of an investment is modified through indexation to account for the impact of inflation on it. Lower earnings result from a greater purchasing price, which in turn results in a lower tax. Your long-term capital gains can be reduced with the use of indexation, which lowers your taxable income. Debt funds are regarded as a superior fixed-income investment choice as compared to traditional fixed deposits (FDs) because of indexation.
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What is capital gains amount versus indexation value?
Rammohan Choudary
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2023-05-14T21:00:01+00:00 2023-05-15T11:19:13+00:00Comment
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