Capital Asset
Any property held by a taxpayer, including securities, real estate, jewelry, and drawings. It does not include stock-in-trade (inventory) or personal effects (like clothes/furniture), though jewelry is an exception.
Grandfathering (Jan 31, 2018)
A clause that protects gains made on listed equity shares up to January 31, 2018, from tax. If you bought shares before this date, your "Cost of Acquisition" is the higher of: (a) Actual Buy Price, or (b) Lower of (Sale Price, FMV on Jan 31, 2018).
Cost Inflation Index (CII)
A number notified by the government to measure inflation. It was used to adjust the purchase price of assets (like property) to reduce taxable gains. Note: Budget 2024 removed indexation for most assets, but it remains optional for properties bought before July 2024.
Section 54 / 54EC
Exemptions available when you sell a house. Section 54: Invest capital gains in another residential house. Section 54EC: Invest gains in specified bonds (NHAI/REC) up to ₹50 Lakh.
Tax Harvesting
The strategy of selling stocks that have gained value (up to the ₹1.25 Lakh exemption limit) and buying them back immediately. This "books" the profit tax-free and raises your purchase price for future sales.