Understanding capital gains can help you save taxes: All you need to know

The initial thought of taxation on capital gains can be exhausting when you encounter it for the first time or come across an issue which does not seem familiar. However, capital gains are not as complicated as it may seem. Understanding a few basic concepts relating to capital gains will ease the process of taxation on gains and may also help save taxes.

Defining capital gain

Simply put, the profit made on the sale of a capital asset is termed as capital gain. This leads us to understand as to what all is included in a capital asset.

Capital asset