ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If investors end up selling this asset at a higher price than that at which he or she had purchased it, the profit is known as capital gain on equity shares. Wealth gain on shares is divided into two categories depending on the time for which the shares are held by investors.

Detailed explanation-2: -If you sell a security for more than the original purchase price, the difference is taxable as a capital gain. Gains from the sale of securities are generally taxable in the year of the sale, unless your investment is in a tax-advantaged account, such as an IRA, 401(k), or 529 plan.

Detailed explanation-3: -In Canada, capital gains or losses are realized only when assets (such as stocks, bonds, precious metals, real estate, or other property) are sold and are subject to capital gains tax.

Detailed explanation-4: -Your taxable capital gain is generally equal to the value that you receive when you sell or exchange a capital asset minus your “basis” in the asset. Your basis is generally what you paid for the asset. Sometimes this is an easy calculation – if you paid $10 for stock and sold it for $100, your capital gain is $90.

Detailed explanation-5: -Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive.