“Due to its special nature, capital gain has a special taxation regimen in most countries, usually being taxed lower than other income categories,” SCC Managing Partner Dan Schwartz told Business Standard.
In , capital gain is either taxed as profit, for companies, and as income, for individuals, Schwartz added. Capital gain is not an immediate gain in cash, but can be defined as an increase in value of an asset purchased as an investment, he added. “We can also talk about capital loss, in case the market value of an asset declines,” Schwartz said. Examples of capital gains are incomes resulted from the sale of real estate properties or shares.
