New Delhi, Aug. 25 -- When an investment is sold, capital gains are not simply the difference between purchase and sale prices. Certain expenses may be considered when calculating taxable gains, but their treatment depends on their nature. Investors, therefore, need to distinguish transaction costs from financing costs.

Hence, having a clear understanding of the applicable legal provisions and planning redemptions accordingly can help ensure that capital gains are realised at the most opportune time and that tax filing is facilitated effectively.

Keeping these core aspects in mind, let us discuss capital gains and brokerage taxation in detail, along with the applicable provisions.

Brokerage paid wholly and exclusively in connection wit...