Step-by-step explanation:
- It is the amount of profit gained by the organization by selling the stock, bond or other real estates.
- If the value of selling price is higher than the cost price then it means that the capital gain is achieved.
- The gain amount is calculated by subtracting the higher selling price with the lowest cost price
- Example of capital assets are: mutual fund, stock, house, land, etc
- If you achieve a capital gain, then you need to pay tax for it.