Capital gain is the profit earned from selling assets like houses, land, or shares. Learn our guide covers property sales, types, taxation insights, and expert tips for precise financial planning in India, including the 2024 capital gains tax rate.
First, let’s define what a capital gain or loss is. A capital gain or loss is the difference between what you paid for a capital asset (like bonds, mutual funds, ETFs, real property, or stocks) and what you sold it for. If you sell your investment assets (for example, assets that...
While you need to include all capital gains in your tax return for the year you sell the shares, a discount applies for longer-term investments. Investments held for more than 12 months are only taxed on half of the capital gain. This is known as thecapital gains tax (CGT) discount....
A capital gain (or loss) is also realized when the property isexchangedfor other property. Accordingly, when preparing your tax return, you should consider whether you were party to any nonstandard transactions of this type during the tax year. Special rules apply to certain"like-kind" exchange...
When the fair market value of the asset is higher than its carrying value, then the asset impairment takes place. There is a requirement to test the assets for impairment so that the business does not report an overstated balance of the as...
Final Thoughts On Calculating IRR The IRR of a potential investment represents its annual growth rate, over whatever period of time you plan on holding it. It measures the total return, including both positive cash flows and the capital gain from selling.In the case of businesses or real estat...
Capital assets can take various forms, including stocks, bonds, property and equipment. If you sell a capital asset for more than you paid for it, you will owe capital gains tax at the end of the year. You must also pay taxes on capital gains from the sale of personal property such as...
To calculate your business’s FCF, take the total cash generated from your operations and subtract your capital expenditures (i.e., investments in long-term assets, like property, equipment, or patents). Free cash flow formula The basic free cash flow formula looks like this: ...
services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or ...
Cost basis is the original value of an asset for tax purposes—usually the purchase price, adjusted forstock splits,dividends, andreturn of capitaldistributions. This value is used to determine the capital gain, which is equal to the difference between the asset’s cost basis and the current ...