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How to Compute Your Capital Gains

This booklet should not be construed as an exhaustive statement of the Law. In case of doubt, reference should always be made to the relevant provisions in the Acts and the Rules.


Lack of awareness amongst taxpayers is often cited as the main reason for low level of compliance towards tax laws. It has been a constant endeavour of the Directorate of Income Tax (PR, PP & OL) to increase the awareness of the taxpayers about the provisions of tax laws and the steps taken by the government to reduce the complexities of tax laws and improve Tax Payer Service. The booklets published under the
Tax Payers Information Series have proved to be an effective and convenient tool to educate the tax payers in discharging their tax liabilities relating to Direct Taxes.

Quite often, people dispose of their movable and immovable assets but, due to lack of knowledge about the provisions of law, they are not aware about their liability towards capital gains tax. The booklet titled “How to Compute Your Capital Gains” was brought out to address such types of issues. Its last edition was brought out in the year 2008. The present edition incorporates further amendments made upto the Finance Act, 2010. The author Smt. Garima Bhagat, Addl. CIT has taken keen interest in updating the edition.

It is hoped that this publication will prove to be very useful for the readers. The Directorate of Income Tax (Public Relations, Printing & Publications and Official Language) would welcome any suggestion to further improve this publication.

New Delhi (Amitabh Kumar)
Dated : Director of Income Tax
(PR, PP & OL)

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