Provisions Related to Income from Capital Gains

DEFINITION

When we buy any kind of property for a lower price and then subsequently sell it at a higher price, we make a gain. The gain on sale of a capital asset is called capital gain. This gain is not a regular income like salary, or house rent. It is a one-time gain; in other words the capital gain is not recurring, i.e., not occur again and again periodically. Whenever there is a loss on sale of any capital asset it will be termed as loss under the head capital gain.