what is Capital Gains Tax?

Question

how to understand them

Answer 1

"A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of an asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax."

Answer 2

If you buy a capital asset...such as stocks, bonds, and real estate, and later sell it for more than you originally purchased it for, the profit is called a capital gain.

Capital Gains Tax is the tax that is levied on the profit from this transaction.

There has been a lot of differing opinions on what is considered the proper tax rate for capital gains....some tell you that a lower tax rate on capital gains stimulates the flow of venture capital to new, start-ups...which provides capital gains instead of dividend income. It also has caused companies to retain and reinvest a high %age of their earnings, in effort to provide stockholders with a lighter tax instead of a higher taxed dividend income. In 2003, in the US, the tax rate applied to capital gains for assets held less than one year was the marginal tax rate of the tax payer, and it was 15% for assets held for one year or longer...5% if the individuals regular tax rate was lower than 25%. I don't know if this might give you some insight...I'm not up on India's tax laws.

Answer 3

Upon selling property for a profit, you begin to cry when your silent partner (government) takes its share without any risk of a Capital Loss exposure---then you will understand Capital Gains Taxes.

Answer 4

Click on the link below and refer to statutory provisions of capital gains under Income Tax for all about capital gains
http://www.allindiantaxes.com/incometaxch-4.php

Answer 5

In finance, a capital gain is profit that results from the appreciation of a capital asset over its purchase price. If the price of the capital asset has declined instead of appreciated, this is called a capital loss. Capital gains occur in both real assets, such as property, as well as financial assets, such as stocks or bonds.

You have to pay taxes on the money you earn on your investments.

Answer 6

when you buy something, over time it may appreciate in value.
if you sell it for a profit, you are taxed for that appreciation.

example- you buy 1 share of yahoo stock at $50.
after 2 years, you sell your share for $120. You are taxed X% on the appreciation of $70.

how much that percentage is depends on the time you hold. currently, if it is less than a year, you are taxed as normal income; if it is over a year, you are taxed at 15%

Answer 7

That's so the man can stick it to you. If you own a home, you pay property taxes. However if you just rent, you can't pay a property tax, so the government slaps you with a "capital gains" bullshit tax so that they still get to squeez money out of you just for living.

Hope this helps! ♥

Answer 8

the tax that you pay on the profit you make from the sale of the property when you sell it. Deduct the price you paid for the property from the price you sold it for.
be cautious and see an acct b4 selling so not to pay to much tax

Answer 9

It is the tax on the gain on the sale of an asset (house, stocks, etc.).

Answer 10

ANY GAIN RECIEVED BY SELLING ANY ASSET SUCH AS LAND OR SHARES ARE TO BE TAXED FOR THE APPRECIATION IN THEIR VALUE SUCH TAX IS CALLED CAPITAL GAINS TAX