1052(Income tax) What is the difference between Capital gains and Ordinary gains? (Concept) Methodology - Harvard Case Model Narration - By Amlan Dutta Video Link - https://youtube/watch?v=bY7QXmA2LC8 It is very clear that we are studying income tax . But do we all know that before we quantify income in our tax return , we must first check for the basis of charge ! So , let me delve further . Every head - saloary , House property , business profession , capital gains and other sources is first checked for the basis of charge ! That is , if the income is not qualified for such head , we cannot charge it to tax under such head ! Likewise , for capital gains , we first need to check whether the asset which is transferred is capital in nature . If it is a stock , land , property , ornament , etc etc it will qualify and we can then do our calculations to figure out whether transfer has resulted in gains ! If not , and we still have gains , then it is a ordinary gain So , say i sell a property and incur gains then it is a capital gain ...But say i sell my computer and incur gains , it is a ordinary gain and to be reflected in other sources or business ( if it is a stock in trade ) Hope that helps , Amlan Dutta
Posted on: Sun, 02 Nov 2014 17:49:26 +0000
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