Definition
Capital gains tax is a tax levied on the profit earned from the sale or disposal of capital assets, such as stocks, bonds, real estate, or other investments. Capital gains are typically subject to specific tax rates that may differ from ordinary income tax rates. Capital gains tax encourages investment and asset ownership while generating revenue for government coffers.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.