This article discusses various scenarios related to Capital Gains Tax and Capital Allowance in Taxation Law. It covers capital gain on family house, car, business, furniture, and paintings. It also explains the computation of assets reduction and the time at which the asset starts depreciating. The article provides insights on how organizations add any type of expenses incurred for running the machines to the cost of the machinery itself. The total amount of the depreciation charged is calculated on the date of purchase not withstanding the put to use.