Capital Gains Exemption
Capital gains exemption is a tax relief offered by the government on profits earned from selling assets. Typically, investors are required to pay tax on short-term or long-term capital gains, depending on the holding period of the asset. However, in certain cases, the government allows investors to offset or reduce their tax liability. For example, if an investor sells property and reinvests the entire sale amount into another property, they may qualify for capital gains exemption. This encourages reinvestment and helps reduce the tax burden on investors.
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