What is Capital Gain. How is capital gains tax computed?

A type of tax levied on capital gains incurred by individuals and corporations. Capital gains are the profits that an investor realizes when he or she sells the capital asset for a price that is higher than the purchase price.

 

 

 Capital gainsareprofitsfrom thesaleof assets heldfor individualfacilityengaged ina businessorindustrialorprofessionallyorownedlegal personorprofitsfrom the sale ofparticipation sharesin thecapital oflegal personsandthecapitalist profitusuallyis the difference betweenthe soldvalueand the book valuewith respect toassets, a differencebetween thevalue of thepartner's shareAlmtforeigtime of exitand the value ofhis stakewhen he enteredthe companyAndprocessedvaryfromstatetostatetax lawbythe statein which theactivityis located.

An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset's purchase price.

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