What is capitol gain?

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.