Question

Capital Gains Tax in terms of any real estate property is

• A. The tax on the profits earned from a sale of property
• B. The tax on the profits earned from a sale of property within 2 years of acquiring it
• C. The tax on the profits earned from a sale of property after 2 years of acquiring it
• D. The total sum of stamp duty on the capital amount spent while purchasing the property

Hint:

Capital Gains Tax applies strictly to profits realized upon sale, not on the asset value itself. If you sell a property at a financial loss, no Capital Gains Tax is due; instead, you incur a capital loss which can often be carried forward to offset future gains.

Answer 1

The Correct Option is A