Mr. Kapoor, who does not deal in real estate, purchased a residential house as an investment in April…

Under section 67(1) of the Income-tax Act, 2025, profits or gains arising from the transfer of a capital asset in a tax year are chargeable under the head "Capital gains". The house was held as an investment, not as stock-in-trade, so it is a capital asset under section 2(22); having been held for not more than twenty-four months, it is a short-term capital asset under section 2(101)(a). This corresponds to section 45 of the repealed Income-tax Act, 1961.