capital gain means If we sale our Fixed Assets like 
Machinary & Builidings from that if we get profits then it 
is capital ganin. Simply we can say that whare incomes 
comes from fixed assets. that is called capital gain.

Capital gains are our profits out of sale of fixed assets. 
We call this as capital gains because these gains do not 
result because of our business (in which case we could have 
called it as Profit). We earned the gain because we have 
purchased them through Capital. Thus the only contributor 
to the gain is Capital. Therefore, it is called as capital 
gains.

Moreover, adding these kind of gains with the acutal 
business profit will dilute the real picture of how did the 
organization perform. Therefore, the profit from the sale 
of fixed asset should be separated from actual business 
profit and put under account head "Capital Gains".

- Ma10kumar, Chennai