Under which of the following circumstances may lsquo capital gains rsquo arise 1 When...........

Economic Affairs Tax System

Under which of the following circumstances may ‘capital gains’ arise?

1. When there is an increase in the sales of the product

2. When there is natural increase in the value of the property owned

3. When you purchase an artifact and there is growth in its value due to increase in the popularity

Select the correct answer using the codes given below:

1 only

2 and 3 only

2 only

1, 2 and 3

1st statement is incorrect i.e. When there is an increase in the sales of the product, capital gains arise.

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