What are capital gains?

Profits from selling assets like stocks or real estate Interest earned on savings accounts Dividends received from company shares Rental income from property

How does the holding period affect capital gains?

Longer holding periods always result in higher capital gains Holding periods determine if gains are long-term or short-term Short-term gains are tax-exempt Holding periods only matter for real estate investments

What is the purpose of indexation in capital gains calculations?

To increase the tax burden on investors To adjust for the effects of inflation To determine the fair market value of assets To predict future market trends

How does indexation benefit debt fund investors?

It exempts them from paying any capital gains tax It allows them to deduct investment expenses It reduces their taxable capital gains amount It guarantees higher returns than fixed deposits

What is the Cost Inflation Index (CII)?

A measure of stock market volatility A tool for predicting real estate prices A government-published measure of inflation An index tracking the performance of debt funds