What are capital gains and how tax rates are applied on them? Find out here

Capital gains are the profit you make when you sell a capital asset. A capital asset commonly includes land, a house property, shares, machinery or equipment used in a business etc.

Where there is income, there is income tax too. Income here includes salary, rental income, profits from carrying on a business or a profession, profits made on the sale of an asset, interest income etc. While all of these incomes after allowing the applicable deductions are subject to income tax at rates applicable to the individual based on the income slab he falls under, capital gains taxation is a little different. Interestingly, determining whether capital gains are long term or short term is crucial to determining the rate of tax applicable on capital gains. Lets us see how.

Capital Gains