Capital gains and capital Income are two different concepts in the field of finance.
It’s refers to any income earned from capital assets, such as interest income from bonds, dividends from stocks, or rental income from a property. Capital income is typically earned as a regular income stream and is taxable at the applicable tax rate.
On the other hand, capital gains refer to the profits earned from the sale of a capital asset, such as stocks, bonds, real estate, or other investments. Capital gains are calculate as the difference between the sale price and the purchase price of the asset. If the sale price is higher than the purchase price, the investor earns a capital gain, and if the sale price is lower than the purchase price, the investor incurs a capital loss. Capital gains are typically realize only when the investor sells the asset, and are taxable at a lower rate than regular income, depending on the holding period and the tax laws in the jurisdiction.
In summary, capital income is any income earn from capital assets, while capital gains refer to the profits earned from the sale of a capital asset. Capital gains are tax at a lower rate than regular income, while capital income is tax at the applicable tax rate.
To visit: https://www.incometax.gov.in
