Taxation of Capital Gain

Taxation of Capital Gain

Introduction

Capital gain or capital loss in simple words is the difference between the selling price and purchasing price of an asset or selling price of an asset - purchase price of an asset = Capital gain (capital loss if the selling price is below the purchasing price of an asset). And, tax authorities are always ready to collect or pose a tax on the amount of money you realized in the form of capital gain, the tax you pay on the capital gain is termed as capital gain tax (Thomas, 2004).

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