Capital Gain is the Tax that is levied on the profit that you earn when you sell something at an increased value. So, the amount of benefit that you make will be taxed, not the entire amount that you receive. But, there are some assets that you can sell for a profit, and not have to pay the capital gain Tax for it. Also, if the total amount of gain that you make is below the tax-free allowance rate, then you do not have to pay capital gain tax.
Capital Gains Tax would apply to the assets that are sold, given as a gift, transferred to someone’s name, bartered or when you receive monetary compensation. You have to pay this tax when you sell your possessions, any property that is not your primary home, your main home if it is large, or you have lent it or used it for business at any point of time, shares and other business assets. The rate of the tax would depend upon the asset that you sell. This applies to the overseas transactions as well.
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