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Capital gains tax is applicable on profits from sale of capital assets. Rates vary based on holding period and asset type.
Capital gains tax is levied on the profit from the sale of assets like stocks, property, etc.
Short-term if held less than 3 years for equity, taxed at 15%. Long-term if held more than 3 years, taxed at 10% above ₹1 lakh.
Subtract purchase price from sale price, apply indexation for long-term, then apply tax rates.
Indexation adjusts purchase price for inflation using cost inflation index.
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