Capital Gain Bonds

Capital Gain Bonds

An appreciation in the price of any asset or investment from which the market value of the asset or investment is increased is known as Capital Gain. In India, tax is only levied on the capital gain when capital assets are sold, i.e., realised gain. It is levied when such an asset is transferred from one owner to another. Tax is not levied on unrealised gain, i.e. when the purchase price of the assets or investment becomes lower than the current market value of the assets or investment, but the assets or investment is still unsold. Also, assets received as gifts or by inheritance are not considered capital gains and are exempted from the calculation of income tax for any individual. Property, plant and equipment as well as stocks, bonds, goodwill, etc., are all examples of capital assets.