particulars amount in rs salary income (net) 2,00,000 business income (net) 3,50,000 long term capital gain on sale of land 16000 loss from gambling in a game 30,000 there are certain other type of losses- unabsorbed depriciation short trem capital loss   15000 10500 a. define and compute gross total income b. discuss the concept of carry forward of losses with refernce to above context also, discuss the amount of loss that can be carried forward in the said case. in case it's any number 15000/10500/nil give reason for the same

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.