Capital Gain is the Tax that is levied on the profit that you earn when you sell something at an increased value. So, basically the amount of profit that you make will be taxed, not the entire amount that you earn.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 be applicable on 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 personal possessions, any property that is not your main 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 is applicable on the overseas transactions as well.
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