Taxation, as you know is the source of revenue for the government. Governments use these taxes for various development projects. To calculate the tax to be paid, numerous computations are required such as the tax on salary, house property of an individual, etc. One of the most important calculations for determining the tax liability of an individual is the computation of capital gains. This concept seems difficult to the students and they seek taxation law assignment help from various sources to solve capital gain tax-related problems for their assignment.
 
The computation of capital gain is not a difficult task if you stay updated with the tax laws. To understand tax, it is important for you to regularly update your knowledge of the rules and regulations. As you know, taxation is a branch of law and like any other legal subject, its provisions are also amended from time to time. You must upgrade your knowledge on a regular basis. As of now, we will explain three methods to calculate capital gain to help you solve the assignment problem. Do not worry, these ways are in confirmation with the present provisions. You can completely rely on them for your work.
The Three Capital Gain Computation Methods
The calculation of capital gain is very easy with the methods that we are going to share with you. Study the following ways very carefully one by one to understand them completely.
Method no. 1: Capital Gain Tax Discount Method
This is a very simple way to compute capital gain on the assets that an assessee has owned 12 months prior to the date of the taxable event. It allows a capital gain reduction by 50% for the resident individuals and for the eligible life insurance companies, it is reduced by 33.33%.  
 
The formula for computation: ( Capital Proceeds-Cost Base-Capital Loss, if any)- Relevant Discount Percentage
 
While using this method, you must remember that it does not apply to companies.
Method no. 2: Indexation Method of Capital Gain Calculation
This method is used to calculate the capital gain on the assets that are acquired by the assessee before 11:45 am on 21st September 1999 or held 12 or more months before the date of the tax paying.
 
For calculating the capital gain as per this method, you first need to compute the indexation factor using the Consumer Price Index to arrive at the indexed cost and then apply the following formula.
 
The formula for computation: Capital Proceeds-Indexed Cost
Remember, this method can be used only in the case of the individual assessee and does not apply to companies.
 
Method no. 3: Other Method for Capital Gain Calculation
This is the most basic and easiest of all the three methods and is used to calculate the capital gain on the assets that the assessee has owned for less than 12 months before the date of the tax paying. You can simply apply the following formula.
 
The Formula for computation: Capital Proceeds-Cost Base
We hope that you have understood the above methods to compute capital gain. Practice the related questions before jumping on the assignment problem. It will give you the confidence to apply them to your question correctly. The correct application of these methods will ensure that you get full marks from the professor. 

About the author: Casey Floyd is an academic writer associated with Global Assignment Help Australia. In addition to academic writing, she has a keen interest in law and spends her free time researching new topics related to this field. Further, many students have availed of the benefit of the online assignment help provided by her.