Hello sir My question is if we have sold a non wasting chattel for 6200 and bought it for 5800 and incurred 300 legal cost… Will it considered as the category for which 5/3 rule applies or (5800+300)=6100 or Normal Computation applies…?
The 5/3 rule simply computes the MAXIMUM gain – if as in your example the ACTUAL gain is lower then the actual gain will apply – have you used the study notes and lectures?