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| *Ostroff, Fair and Company>>>India Taxes |
What is capital gain tax? what is the amount? |
What is capital gain tax? what is the amount? Capital gain tax is the tax payable by the assessee on the income earned on sale of an asset at profit, like property, shares etc. Rate of tax will be different and conditions would be different like the Capital Gain on sale of landed property if kept in a Term Deposit for a period of three years the Capital Gain will not be taxable. but Shares sold after one year of purchase now do not attract Capital gain Tax etc. Pl. Check up in the Finance Act. The capital gain tax is the "special tax" assessed to an investment. If the inverstment goes up in value it is said to have realized a "gain" If it goes down in value it has realized a "loss". The capital gain tax is currently at 15% of the value gained on an investment. Remember that you do not realize the gain until the investment item is sold, until that time it is only a "paper" gain. There may be different rules in many countries. But basics are something like this. For example if you bought a property for say $100,000 then sold it a year later at $110,000 then you would have made a capital gain of $10,000. This amount is taxable according to the income tax laws of the country. some countries may allow indexation for inflation and thus reduce the capital gain. Some may have minimum holding period before any rebates for capital gain can apply. Capital gain tax is the tax payed on the gain on the sale of capital goods or fixed assers. For eg. a property brouhght for Rs 5 lakhs is sold for Rs 5.3 lakhs then the excess amount of Rs 30 thousand will be is known as capital gain and a tax of 15% will have to be paid on the 30k As everyone has said Capital gains tax is the difference between what you paid for a property and then what you sold it for. There used to not be Capital Gains (ah the good old days) I'm in the US and when Clinton was President the capital gains were changed (thank God) They used to start on dollar zero of the profit, but now for me in Calif. it's $250,000 per person... |
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