Investing Basics Beginner

Capital Gains

💡 In plain English: The profit you make when you sell an investment for more than you paid for it.

Definition

The increase in value of an asset between purchase and sale. Short-term (held <1 year) and long-term (>1 year) gains are taxed differently.

📌 Real-World Example

You bought 100 shares of a blue-chip stock at ₹3,000 and sold at ₹3,800. Capital gain = ₹80,000. Held for 2 years → Long-Term Capital Gains tax applies (10% above ₹1L in India).

🔢 Formula

Capital Gain = Selling Price − Purchase Price − Expenses

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⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.

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