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What is capital gains?
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Answer / vinay & ibbu
capital gain means If we sale our Fixed Assets like
Machinary & Builidings from that if we get profits then it
is capital ganin. Simply we can say that whare incomes
comes from fixed assets. that is called capital gain.
| Is This Answer Correct ? | 22 Yes | 1 No |
Answer / ma10kumar
Capital gains are our profits out of sale of fixed assets.
We call this as capital gains because these gains do not
result because of our business (in which case we could have
called it as Profit). We earned the gain because we have
purchased them through Capital. Thus the only contributor
to the gain is Capital. Therefore, it is called as capital
gains.
Moreover, adding these kind of gains with the acutal
business profit will dilute the real picture of how did the
organization perform. Therefore, the profit from the sale
of fixed asset should be separated from actual business
profit and put under account head "Capital Gains".
- Ma10kumar, Chennai
| Is This Answer Correct ? | 4 Yes | 0 No |
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