# CAPITAL GAINS

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 CAPITAL GAINS
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CAPITAL GAINS - January 4th, 2008

CAPITAL GAINS

STRUCTURE
8.0 Introduction
8.1 Objective
8.2 Basis of Charge
8.3 Capital Assets
8.3.1 Types of Capital Asset
8.3.2 Types of Capital Gain
8.3.3 Transfer
8.4 Computation of Capital Gain
8.4.1 Full Value of Consideration
8.4.2 Cost of Acquisition
8.4.3 Cost of Improvement
8.4.4 Expenditure on Transfer
8.5 Exemption from Capital Gain
8.5.1 Exemption u/s 54
8.6 Capital Gain on Depreciable Asset
8.7 Let us Sum Up
8.8 Glossary
8.9 Self Assessment Exercise
8.0 INTRODUCTION
When we buy any kind of property for a lower price and then subsequently sell it
at a higher price, we make a gain. The gain on sale of a capital asset is called
capital gain. This gain is not a regular income like salary, or house rent. It is a
one-time gain; in other words the capital gain is not recurring, i.e., not occur again
and again periodically.
Opposite of gain is called loss; therefore, there can be a loss under the head
capital gain. We are not using the term capital loss, as it is incorrect. Capital Loss
means the loss on account of destruction or damage of capital asset. Thus,
whenever there is a loss on sale of any capital asset it will be termed as loss under
8.1 OBJECTIVE
After going through this lesson you will be able to understand the meaning of
capital asset, types of capital asset, what is not capital asset, computation of
capital gain, types of capital gains etc. You will also be learning how to calculate
the capital gain of simple problems. The capital gain is also an income and it is
taxable too, at the end of the chapter you will also learn the tax treatment of the
capital gain.
8.2 BASIS OF CHARGE
The capital gain is chargeable to income tax if the following conditions are
satisfied:
1. There is a capital asset.
2. Assessee should transfer the capital asset.
3. Transfer of capital assets should take place during the previous year.
4. There should be gain or loss on account of such transfer of capital asset.
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8.3 CAPITAL ASSET
Any income profit or gains arising from the transfer of a capital asset is
chargeable as capital gains. Now let us understand the meaning of capital asset.
Capital Asset means property of any kind, whether fixed or circulating, movable
or immovable, tangible or intangible, held by the assesses, whether or not
connected with his business or profession, but does not include, i.e., Capital
Assets exclude:
2. Agricultural land in India not in urban area i.e., an area with population
more than 10,000.
3. Items of personal effects, i.e., personal use excluding jewellery, costly
stones, silver, gold
4. Special bearer bonds 1991
5. 6.5%, 7% Gold bonds & National Defence Bonds 1980.
6. Gold Deposit Bonds 1999.
8.3.1 TYPES OF CAPITAL ASSET
There are two types of Capital Assets:
1. Short Term Capital Assets (STCA): An asset, which is held by an assessee
for less than 36 months, immediately before its transfer, is called Short
Term Capital Assets. In other words, an asset, which is transferred within
36 months of its acquisition by assessee, is called Short Term Capital
Assets.
2. Long Term Capital Assets (LTCA): An asset, which is held by an assessee
for 36 months or more, immediately before its transfer, is called Long
Term Capital Assets. In other words, an asset, which is transferred on or
after 36 months of its acquisition by assessee, is called Long Term Capital
Assets.
The period of 36 months is taken as 12 months under following cases:
 Equity or Preference shares,
 Securities like debentures, government securities, which are
listed in recognised stock exchange,
 Units of UTI
 Units of Mutual Funds
 Zero Coupon Bonds
8.3.2 TYPES OF CAPITAL GAIN
The profit on transfer of STCA is treated as Short Term Capital Gains (STCG)
while that on LTCA is known as Long Term Capital Gains (LTCG).
While calculating tax the STCG is included in Total Income and taxed as per
normal rates while LTCG is taxable at a flat rate @ 20%.
The taxability is discussed in details later in this lesson.
Activity A: Name any five items, which are not included in the definition of
capital asset.
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Activity B: State whether the following are the capital Asset or not:
1. Bicycle
2. Horse
3. Car
4. House for self residence
5. Jewellery
6. House let on hire
7. Silver utensils
8. Air Conditioner used as stock in trade
9. Air Conditioner not used as stock in trade
10. Rural Agricultural Land
11. Urban Agricultural Land
8.3.3 TRANSFER
Capital gain arises on transfer of capital asset; so it becomes important to
understand what is the meaning of word transfer. The word transfer occupy a very
important place in capital gain, because if the transaction involving movement of
capital asset from one person to another person is not covered under the definition
of transfer there will be no capital gain chargeable to income tax. Even if there is
a capital asset and there is a capital gain.
The word transfer under income tax act is defined under section 2(47). As per
section 2 (47) Transfer, in relation to a capital asset, includes sale, exchange or
relinquishment of the asset or extinguishments of any right therein or the
compulsory acquisition thereof under any law.
In simple words Transfer includes:
 Sale of asset
 Exchange of asset
 Relinquishment of asset (means surrender of asset)
 Extinguishments of any right on asset (means reducing any right
on asset)
 Compulsory acquisition of asset.
The definition of transfer is inclusive, thus transfer includes only above said five
ways. In other words, transfer can take place only on these five ways. If there is
any other way where an asset is given to other such as by way of gift, inheritance
etc. it will not be termed as transfer.
Activity C: Whether the following transactions are transfer in relation to capital
asset.
1. A house transferred by way of will to son.
2. Bonus shares given by a company to its shareholders.
3. Giving away jewellery for a piece of land.
4. Getting money in lieu of shop in a shopping complex.
5. Giving the rights to use the asset.
8.4 COMPUTATION OF CAPITAL GAINS
The capital gain can be computed by subtracting the cost of capital asset from its
transfer price, i.e., the sale price. The computation can be made by making a
following simple statement.
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Statement of Capital Gains
Particulars Amount
Full Value of Consideration
Less: Cost of Acquisition*(COA)
Cost of Improvement*(COI)
Expenditure on transfer
Capital Gains
Less: Exemption U/S 54
Taxable Capital Gains
-
-
-
-
-
-
-
* To be indexed in case of LTCA
8.4.1 FULL VALUE OF CONSIDERATION
Full value of consideration means & includes the whole/complete sale price or
exchange value or compensation including enhanced compensation received in
respect of capital asset in transfer. The following points are important to note in
relation to full value of consideration.
 The consideration may be in cash or kind.
 The consideration received in kind is valued at its fair market
value.
 It may be received or receivable.
 The consideration must be actual irrespective of its adequacy.
8.4.2 COST OF ACQUISITION
Cost of Acquisition (COA) means any capital expense at the time of acquiring
capital asset under transfer, i.e., to include the purchase price, expenses incurred
up to acquiring date in the form of registration, storage etc. expenses incurred on
completing transfer.
In other words, cost of acquisition of an asset is the value for which it was
acquired by the assessee. Expenses of capital nature for completing or acquiring
the title are included in the cost of acquisition.
Indexed Cost of Acquisition = COA X CII of Year of transfer
CII of Year of acquisition
The indices for the various previous years are given below:
Year Index Year Index
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
100
109
116
125
133
140
150
161
172
182
199
223
244
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
01-02
02-03
03-04
04-05
05-06
259
281
305
331
351
389
406
436
447
463
480
497
If capital assets were acquired before 1.4.81, the assesses has the option to have
either actual cost of acquisition or fair market value as on 1.4.81 as the cost of
acquisition. If assesses chooses the value as on 1.4.81 then the indexation will
also be done as per the CII of 1981 and not as per the year of acquisition.
124
8.4.3 COST OF IMPROVMENT
Cost of improvement is the capital expenditure incurred by an assessee for
making any addition or improvement in the capital asset. It also includes any
expenditure incurred in protecting or curing the title. In other words, cost of
improvement includes all those expenditures, which are incurred to increase the
value of the capital asset.
Indexed Cost of improvement = COA X CII of Year of transfer
CII of Year of improvement
Any cost of improvement incurred before 1st April 1981 is not considered or it is
ignored. The reason behind it is that for carrying any improvement in asset before
1st April 1981, asset should have been purchased before 1st April 1981.
If asset is purchased before 1st April we consider the fair market value. The fair
market value of asset on 1st April 1981 will certainly include the improvement
8.4.4 EXPEDITURE ON TRANSFER
Expenditure incurred wholly and exclusively for transfer of capital asset is called
expenditure on transfer. It is fully deductible from the full value of consideration
while calculating the capital gain. Examples of expenditure on transfer are the
commission or brokerage paid by seller, any fees like registration fees, and cost of
stamp papers etc., travelling expenses, and litigation expenses incurred for
transferring the capital assets are expenditure on transfer.
Note: Expenditure incurred by buyer at the time of buying the capital assets like
brokerage, commission, registration fees, cost of stamp paper etc. are to be added
in the cost of acquisition before indexation.
Illustration 8.1 X purchased a house property for Rs. 1, 00,000 on 31st July 2000.
He constructed the first floor in March 2003 for 1, 10,000. The house property
was sold for Rs. 5, 00,000 on 1st April 2005. The expenses incurred on transfer of
asset were Rs. 10,000. Find the capital gain.
Solution: Since the house property is a capital Asset therefore the capital gain
will be computed. The house property was sold after 36 months of its acquisition
therefore the capital gain will be long term capital gain (LTCG). Date of
improvement (i.e., additional construction of first floor) is irrelevant.
Statement of capital Gain
Particulars Amount (Rs.)
Full Value of Consideration
Less: Indexed Cost of Acquisition (COA) 1,00,000x 497/406
Indexed Cost of Improvement (COI) 1,10,000x497/447
Expenditure on transfer
Long Term Capital Gains
Less: Exemption U/S 54
Taxable Long Term Capital Gains
5,00,000
1,22.413
1,22,304
10,000
2,45,283
NIL
2,45,283
Illustration 8.2
If in the above question the property was acquired by Mr. X on 31st January 2003,
Solution: In this case the house property was sold before 36 months of its
acquisition therefore the capital gain will be short-term capital gain (STCG). Date
of improvement (i.e., additional construction of first floor) is irrelevant.
Statement of capital Gain
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Particulars Amount (Rs.)
Full Value of Consideration
Less: Cost of Acquisition (COA) 1,00,000
Cost of Improvement (COI) 1,10,000
Expenditure on transfer
Short Term Capital Gains
Less: Exemption U/S 54
Taxable Short Term Capital Gains
5,00,000
1,00,000
1,00.000
10,000
2,90,000
NIL
2,90,000
Illustration 8.3
Mr. X acquired gold jewellery for Rs. 6,000 in 1979 (Market Value as on 1st April
1981 was Rs. 10,000). The jewellery was sold by Mr. X for Rs. 49,800 in June
2005. Calculate the taxable amount of capital gain, if the expense on transfer is
Ό%.
Solution: Since the jewellery was purchased before 1st April 1981, therefore the
assessee has the option to choose actual cost or FMV as on 1st April was his cost
of Acquisition. Since the FMV is higher therefore, it will be beneficial for Mr. X
to choose FMV as his COA.
Particulars Amount (Rs.)
Full Value of Consideration
Less: Indexed Cost of Acquisition (COA) 10,000x 497/100
Indexed Cost of Improvement (COI)
Expenditure on transfer (0.25% x 50,000)
Long Term Capital Gains
Less: Exemption U/S 54
Taxable Long Term Capital Gains
49,800
49,700
NIL
125
- 25
NIL
- 25
This is a loss of Rs. 25, we are not using the word long-term capital loss, as it is
incorrect, it means loss due to damage etc.
Illustration 8.4
Mr. X invested Rs. 50,000 in gold jewellery and Rs. 50,000 in equity shares on 1st
June 2004. The jewellery was sold by Mr. X for Rs. 1, 20,000 and shares for Rs.
1, 80,000 on 4th August 2005. There was a ½% brokerage on both the
investments, both at the time of purchase and sale. Calculate the taxable amount
of capital gain.
Solution: Since it is more than 12 months in case of share since its acquisition
therefore, shares are long-term capital asset and in case of gold jewellery it is less
than 36 months therefore it is a short-term capital asset.
Particulars Gold Shares
Full Value of Consideration
Less: Indexed Cost of Acquisition
Gold 50,000 + ½%x 50,000
Shares (50,000 + ½%x 50,000) x 497/480
Indexed Cost of Improvement (COI)
Expenditure on transfer
Gold (0.5% x 1,20,000)
Shares (0.5% x 1,80,000)
Long Term Capital Gains
Less: Exemption U/S 54
Taxable Long Term Capital Gains
1,20,000
50,250
NIL
600
69,150
NIL
69,150
1,80,000
52,030
NIL
900
1,27,070
NIL
1,27,070
Note: Expenses on acquisition are added to COA before indexation, while
expenses on transfer (sale) are subtracted separately to find capital gain.
126
Activity D: A person sells his jewellery for Rs. 1, 00,000. This jewellery was
purchased in 1984-85 for Rs. 12,000. Find the amount and nature of capital gain.
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Activity E: what will be your answer if the jewellery was purchased during 2004-
05?
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8.5 EXEMPTION FROM CAPITAL GAINS
Exemption means a reduction from the taxable amount of capital gain on which
tax will not be levied and paid. The exemptions are given under section 54, these
exemptions are of various types but here we will discuss only one of the
exemptions relating to the house property.
8.5.1 Exemption u/s 54
The exemption u/s 54 relates to the capital gain arising out of transfer of
residential house. The exemption is available to only Individual assessee. The
exemption relates to the capital gains arising on the transfer of a residential house.
Conditions: Exemption is available if: -
1. House Property transferred was used for residential purpose.
2. House Property was a long term capital asset.
3. Assesses has purchased another house property within a period of one year
before or two years after the date of transfer or has constructed another
house property within three years of date of transfer i.e. the construction of
the new house property should be completed within three years. The date
of starting of construction is irrelevant.
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Amount of Exemption: will be the least of: -
1. Capital Gains
2. Cost of new house.
Withdrawal of exemption: If the newly acquired house property is transferred
within three years of acquisition. Thus the earlier exempted capital gain will be
charged to tax in the year in which the newly acquired house property is
transferred. For that the cost of acquisition of the newly acquired house property
will be reduced by the amount of exemption already availed thus the cost will
reduce and thus the capital gains on the new house property will be more. Above
all the new house property will be a STCA since for withdrawal of exemption it
should had been sold within three years of its acquisition thus now the capital gain
of the new house property will be STCG which is charged as per the normal rates
which may be 30% (a higher rate as compare to the flat rate of LTCG of 20%) in
the case of individuals.
Illustration 8.5 Assume in Illustration 7.1 the assess purchases a new house
property for Rs. 2,00,000 on 30th April 2004 how much exemption will be
available to him under section 54.
Solution: Since Mr. X has purchased a new house within one year before of the
date of sale of old house property, therefore, he will be eligible for exemption u/s
54. The exemption is least of:
1. Cost of new house property , i.e., Rs. 2,00,000
2. LTCG i.e., Rs. 2,45, 283
Therefore, the exemption will be Rs. 2, 00,000 and the taxable capital gain shall
be
Particulars Amount (Rs.)
Full Value of Consideration
Less: Indexed Cost of Acquisition (COA) 1,00,000x 497/406
Indexed Cost of Improvement (COI) 1,10,000x497/447
Expenditure on transfer
Long Term Capital Gains
Less: Exemption U/S 54
Taxable Long Term Capital Gains
5,00,000
1,22.413
1,22,304
10,000
2,45,283
2,00,000
45,283
Illustration 8.6 Assume in illustration 7.5 Mr. X sell the new house property in
June 2005 for Rs. 7, 00,000 what will be the tax implication.
Solution: In this case since the new house property has been sold within 3 years
of its acquisition, therefore the exemption on the purchase new house property
will be withdrawn by reducing the cost of acquisition of the new house property,
in the following manner.
Since the new house property is sold within 36 months of acquisition therefore it
is a short term capital asset.
Statement of capital gain of new house property
Particulars Amount (Rs.)
Full Value of Consideration
Less: Cost of Acquisition (COA) 5,00,000
Less: Exemption on old house 2,00,000
Cost of Improvement (COI)
Expenditure on transfer
Short Term Capital Gains
Less: Exemption U/S 54
Taxable Short Term Capital Gains
7,00,000
3,00,000
NIL
NIL
4,00,000
N.A.
4,00,000
128
Activity F: X owns a house, used for his self-residence. He purchased it on
November 30, 1979 for Rs. 2, 00,000. Its fair market value on April 1, 1981 was
Rs. 3, 00,000. He spent Rs. 50,000 on its improvement on September 10, 2004
and sold it on December 30, of previous year for Rs. 20, 00,000. He purchased
another house on February 25, of previous year for Rs. 4, 00,000.
Compute taxable capital gain. B. Com (P) 2005
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8.6 CAPITAL GAIN ON DEPRECIABLE
ASSESTS
Income Tax Act does not defines the term depreciation. However depreciation
means a permanent delivery in the original cost of the asset due to wear and tear,
constant use, new technology etc.
In Income Tax Act depreciation is provided on only four types of assets:
1. Buildings
2. Furniture
3. Machinery and plant
4. Intangible Assets
For calculating depreciation different blocks are made based on the name of asset
and then the rate of depreciation, thus a block will contain only that asset which
will have the same name and same depreciation.
Depreciation = (WDV of the block as on 1st April of PY + Addition to the block 
Selling price of the assets sold) * Depreciation rate.
If an asset is used for less than 180 days during a P.Y. then only ½ of the
depreciation will be provided on that asset.
Illustration 8.7 Mr. X has following assets as on 1st April 2005:
Assets Rate of depreciation W.D.V
Building -A 10% 10, 00,000
Building  B 20% 50, 00,000
Building  C 10% 12, 00,000
Plant - X 20% 24, 00,000
Following Assets were purchased during the year:
Assets Rate of depreciation Purchase price Purchase/Sale
Date
Building D 10% 10, 00,000 Purchase 1/5/05
Building  F 10% 2, 00,000 Purchase 1/2/06
Plant -Y 20% 4, 00,000 Purchase 2/2/06
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Following Asses were sold during the year:
Assets Rate of depreciation Sale Price
Building -A 10% 8, 00,000
Building  C 10% 3, 00,000
Plant - X 20% 12, 00,000
Calculate the depreciation as per income tax act.
Solution:
Particulars Building
 10%
Building
 20%
Plant
 20%
W.D.V as on 1/4/05
Add: Purchases before 180 days of end of
year
Purchases after 180 days of end of
year
Total
Less: Sale
Balance
Depreciation
Building 10%- 2,00,000 x 10% x ½
Building 10%- 21,00,000 x 10%
Building 20%- 50,00,000 x 20%
Plant 20%- nil *
W.D.V as on 31/03/06
22,00,000
10,00,000
2,00,000
34,00,000
11,00,000
23,00,000
1,00,000
2,10,000
19,90,000
50,00,000
nil
nil
50,00,000
nil
50,00,000
10,00,000
40,00,000
24,00,000
nil
4,00,000
28,00,000
12,00,000
16,00,000
nil
nil
* Depreciation on plant is not charged as there was only one plant in the block
and it is sold thus physically the block cease to exist. In this case there will be a
short term capital gain which will be computed as below:
Particulars Amount (Rs.)
Full Value of Consideration
Less: Cost of Acquisition (COA)
Cost of Improvement (COI)
Expenditure on transfer
Short Term Capital Gains
12,00,000
28,00,000
NIL
NIL
-16,00,000
Illustration 8.8 In the illustration 7.7 if the sale price of plant X is 32, 00,000 and
Building C is 29, 00,000 what will be answer.
Solution: In this case there will be short term capital gain on plant X for Rs. 4,
00,000 and in case of building block  10 % there will be short term capital gain
again because the sale price of asset is more than the opening WDV and the
purchases, even though the block physically exist there will not be any
depreciation since the whole cost of the block has been recovered.
Particulars Building
10%
Plant
20%
Full Value of Consideration
Less: Cost of Acquisition (COA)
Cost of Improvement (COI)
Expenditure on transfer
Short Term Capital Gains
38,00,000
33,00,000
NIL
NIL
5,00,000
32,00,000
28,00,000
NIL
NIL
4,00,000
Activity G: Mr X purchased a new office building for Rs. 12, 00,000 on 1st June
of Previous year. The opening block of building as on beginning of the previous
year was Rs. 5, 00,000 with rate of depreciation of 10%. During the year an old
building costing Rs. 7, 00,000 was sold for Rs. 2, 00,000. Find out the
depreciation chargeable and the amount of capital gain if any.
130
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8.7 TAXATION OF LTCG
The LTCG is taxable at a flat rate of 20%, however in case of individual the
taxation is as follows:
If the other incomes except LTCG is less than Rs. 1, 00,000 (maximum non
taxable limit)
Then Tax on LTCG = 20% (LTCG  (1, 00,000  other income))
If the other incomes except LTCG is greater than Rs. 1, 00,000
Then Tax on LTCG = 20% LTCG
Illustration 7.9 Compute the tax on LTCG under following cases:
i) Business income Rs. 4,00,000 LTCG Rs. 1,20,000
ii) Business income Rs. 40,000 LTCG Rs. 1,20,000
Solution:
If Business income Rs. 4, 00,000 LTCG Rs. 1, 20,000
Tax on LTCG = 20 % of LTCG
= 20% (Rs. 1, 20,000) = Rs. 24,000
If Business income Rs. 40,000 LTCG Rs. 1, 20,000
Tax on LTCG = 20% (LTCG  (1, 00,000  other income))
= 20% (1, 20,000  (1, 00,000  40,000))
= 20% (60,000) = Rs. 12,000
Activity H: Mr. S furnishes the details of his income compute the tax on LTCG
under following cases:
Income from Other sources Rs. 1, 00,000
LTCG Rs. 20,000
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131
Activity I: Mr. S furnishes the details of his income compute the tax on LTCG
under following cases:
Income from Other sources Rs. 10,000
LTCG Rs. 20,000
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8.8 LET US SUM UP
Gain on sale of any capital asset is called Capital Gain, if the capital asset is long
term then the gain is LTCG and if the asset is short term then the gain is STCG.
However, gain on sale of depreciable asset is always STCG. The STCG is taxed at
normal rates while LTCG is taxed at flat rate 0f 20%.
8.9 GLOSSARY
Asset: Mans any property which can be realised into cash or some other valuable
item, e.g., land, building, car, jewellery, T.V., computer etc.
Debentures: Debentures are financial document of title, which states that the
person whose name is written on it has given a certain some of money to the
company as loan and he is entitle to get interest on that money till maturity.
Bearer Bonds: Against debentures, bearer bonds does not have any name on it,
any person who will hold these document will be eligible to get the money and
interest. These bonds do not exist now days these have already matured.
Equity Shares: Equity shares are also financial document of title, which states that
the person whose name is written on it (not in case of demat shares) has
contributed to the capital fund of the company and will be eligible for dividend.
Preference Shares: preference shares are also like equity shares with the
difference that the dividend in their case is fixed and it is paid first to preference
shareholders, and later to equity shareholders.
Recurring: Means to recur to occur again and again, e.g., salary, rent etc. occurs
again and again, while non recurring means something which does not occur
again and again which occur once in a while, although it can occur again but there
is no certainty of its occurrence again e.g., loss on account of road accident, gain
on sale of house etc.
8.10 SELF ASSESSMENT EXCERCISE
Q-1 What is capital Asset?
Q-2 Write short note on:
a. Cost of Acquisition
b. Cost of improvement
c. Expenditure on transfer
d. Transfer
Q-3 Explain the deduction u/s 54.
132
Q-4 Mr. X purchased a house property for Rs. 80,000 on July 31, 1970. The
following expenses are incurred by him for making addition to the house
property:
i) Cost of construction of first floor in 1975-76 Rs. 1, 00,000
ii) Cost of construction of Second Floor in 1983-84 Rs. 2, 40,000
For market value of the property on April 1, 1981 is Rs. 4, 00,000. X sells the
house property on August 20, 2004 for Rs. 30, 00,000 (expenses incurred on
transfer: Rs. 10,000). Find out the capital gain chargeable to tax.
B. Com (P) 2006.
1. Dr. Vinod K. Singhania and Monica Singhania; Students Guide to Income
Tax; Taxmann Publications Pvt. Ltd.; latest edition.
2. Mahesh Chandra & D.C. Shukla; Income-tax Law and Practice; Pragati
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 Re: CAPITAL GAINS
Jitendra Mazee

Student of Bachelor of Engineering at RGTU Bhopal

Institute: RGTU Bhopal
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Re: CAPITAL GAINS - February 25th, 2016

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Hey faaiz, very well done! Really nice and impressive work. Well, capital gain is an increase in the price of a capital asset that makes a higher worth compared to buy price. I am also adding a document for explaining the capital gain in more detail.
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