Computation of capital gains clarified: deductions, indexed cost rules, currency conversion for non-residents, and specified exclusions govern taxable gain. Capital gains are computed by deducting transfer-related expenditure and the cost of acquisition and improvement (subject to exclusions) from the full value of consideration; specified adjustments apply for business trust units, transfers involving specified persons/entities, non-resident transactions in shares or debentures requiring foreign currency conversion, and long-term gains are subject to indexed cost rules and listed exclusions; securities transaction tax is not deductible. Definitions govern currency conversion, indexed cost calculations, and the Cost Inflation Index notification mechanism.