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What is capital gain tax

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tax

There are many types of tax that a government imposes upon a taxpayer (an individual or other legal entity) in order to fund various public expenditures. Like for example, Income tax, property tax, sales tax, value added tax, etc. One of the types is capital gain tax. So what is capital gain tax? 

Suppose you bought a land in Rs. 1 lakh. After 3 years, the land price went up to 10 lakhs and you sold it. Here, you made 9 lakhs. That’s your capital gain and you gotta pay tax on that as per your country law.
 
That’s a simplest way of explaining capital gain tax, but it’s much complicated in business level, specially when business is quite complex.
 
Suppose you started a mobile app company investing 5 Lakhs. After certain years, Facebook comes and says, “hey you got an awesome app, we want to buy your company for 1 billion rupees,” and you sold it. Now, you gotta pay capital gain tax on 500000 – 1,000,000,000 which is Rs. 9,99,500,000 as per the taxation rate of your country. If it is 15%, you need to pay like 1,49,925,000 (One crore forty-nine lakhs twenty five thousands) to government.
 

 

That’s called capital gain tax.  Wikipedia definition says

capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was greater than the amount realized on the sale. The most common capital gains are realized from the sale of stocksbondsprecious metals, and property.  
In today’s world, business is more than just a balance sheet of a company. Your company may be earning nothing but your company value can be perceived as billion-dollar worth. Like for example, Whatsapp was sold in 1 billion though it was not making any money. Recently, Musically was sold in 1 billion. Even it was not making money. A brand name can worth a million, an idea can worth a million. You sell it and you are subject to capital gain tax.
 
There are countries like Singapore, Hong Kong, Switzerland which don’t have capital gain tax provision and there are countries like Nepal which have. Again different countries have different rates, different clauses, different slabs, different exemption.
 
Lesser complication, better investment, more entrepreneurs, more innovation.
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Knowledge & Infos

How Einstein Discovered Time Travel

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Photo by Zulfa Nazer on Unsplash

In the year 1905 A.D, Einstein published his work that later came to be known as the “theory of special relativity”. The paper consisted of ideas that were far ahead of its time. The theory was revolutionary but also was so unconventional that it shook peoples intuition about space and time. The former concept of time being universal to all the being on and off earth was changed by him. His theory postulates that the speed of light will be same irrespective of the state of motion of its source.

His theory brought about the concept of time dilation. Time dilation simply means, that time runs slower when you travel at speed comparable to the speed of light i.e “c”. Now this may seem to be uncommon or had to visualize but its a proven phenomenon and that is how he discovered the ways for time travel. From his theory the following can be used for future time travel:

Speed:

It might come as a shock but the people in the international space station that is always rotating earth at a high speed are actually time travelers. Their constant state of motion in comparatively high speed bring about the minuscule level of time dilation. This dilation causes them to age slower than the rest of people on earth. In other words, if we are able to travel at a speed of 90% of light’s speed we will age 2.6 times slower than people on earth. Travel now at that speed and leave earth, if we come back after 4 years the earth will have already advanced by 10 years. That means we literally jumped 6 years of earth time. Though our friends on the ISS don’t experience such big time jump, but they do gain some very very small amount of extra time.

The particles that runs through particle accelerators like LHC, are very lucky. They travel at a speed of 99.99% of speed of light and for them 1 sec is equal to 11 months on earth normal time. This is the result of time dilation and thus Einstein discovered or more like theorized it.

 

Gravity:

The other method also came from Einstein. This time general relativity. In general relativity he introduced the concept of how the universe experiences the space and time as wide spread cloth that can bend when an object is placed over it. For simplicity imagine a stretch trampoline with a heavy ball in the middle. Those curves around the ball is the bend in space and time. Now if the ball is big enough to bring about a major bend in space and time, he says it can slower the time. Precise atomic clocks at different gravity level have been used to test for this phenomenon and turns out, it is true. When an object is subjected to heavy gravitational force it experiences a slower time. Practically, we would need a very heavy object like a black hole or other such scale heavenly bodies to see a significant time jump for us. Though it seems not feasible for humans any time soon, the clocks on the satellites seem to experience it all the time. Those clocks and the clocks on earth are required to be constantly synchronised taking in account for the gravity to keep them functioning.

The GPS satellites are constructed taking in account for both the time dilation and gravitational effects. If any one of them is left out, your GPS won’t be working as precisely as it should be.

Wormholes:

As explained in the movie “Interstellar”, wormholes are holes in spacetime connecting two different points of space and time. These “holes” in spacetime are also the solution to the equation published by Einstein in his theory of general relativity.   Theoretically, anything that goes through wormholes can jump between two points of space and time. It is believed that many wormholes are being constantly created and destroyed in the quantum level but finding a wormhole that can fit a person or a spaceship is a challenge yet to be completed.

Conclusion:

Apparently, time travel isn’t really an unattained dream at this point. The only compromise is it is not significantly large and we can’t seems to control at which point we exactly want to go. If you are still thinking about traveling back in time then it is discussed in this post. What you think about time travel? let us know in the comment.

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Knowledge & Infos

Report: Sexual Behavior trend among sexually-active urban Nepalese youth

We had conducted an online survey to learn about sexual behavior, trend and pattern, among Nepalese urban youths. It’s a report based on that.

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Image: Unsplash

In order to learn sexual behavior trend among urban Nepalese youth, we had asked Kmag followers to participate in a survey anomalously to answer the following questions:

  1.  Their age when they had their first sex
  2.  Gender.  Options given were:  Male, female, and others.
  3.  District where they had their first sex.
  4. We had asked if it was before marriage or after marriage.
  5.  If it was a casual sex or while in relationship.



There were 396 respondents participating in the survey, out of which  284 had identified themselves as male,  109 had identified themselves as female, and 3 had identified themselves as Other (LGBTQ).

 

Background of respondents

Kmag being an English magazine and most followers being from Kathmandu and other major cities within the age bracket of 18-35, respondents can be classified as Urban Nepalese youth with good English proficiency, making them relatively exposed to global trend and modern values.   Thus, this survey may or may not represent the whole Nepalese youth, but can be good hint to gauge the pattern and trend of sexual behavior among Nepalese youth in whole.

Purpose of the survey

Purpose of the survey was to learn the sexual behavior among urban Nepalese youth, basically in terms of:

  1.  At what age, they begin to be sexually active.
  2. Gender wise sexual behavior.
  3. Percentage of premarital sex.
  4.  Nature of sexual relationship.

Authenticity of the survey

The survey was conducted online through anonymous form.  There can be a chance of false information being provided.  However, the case should only be marginal.

Data Analysis (WHAT WE FOUND)

Going through the data collected, we have broken down the data to make analysis on following heading

Average age at the time of first sex (Lost Virginity)

Per the report, the age at which respondents claimed to lose their virginity ranged from 13 years old to 30 years old.

In an average, sexually-active urban Nepalese youths had lost their virginity at age 20.36, in which males had lost their virginity at age 20.15 in average, and females at age 20.79 in average.  45% of males and 40% of females were found to have lost their virginity at age between 17-20.   However, data also showed a pattern that quite lot of females lose their virginity in early and mid 20s (35%), whereas males tend to lose their virginity in their late teen.

There in the figure, you can see number of respondents who had lost their virginity at the respective ages.

Teenage sex

181 out of 396 respondents had their first sex in their teenage.  That means 45.7% respondents had their first sex in their teen age.

Breaking it down gender wise:

Male:  47.5% of male respondents had their first sex in their teen age.

Female:  42.2% of female respondents had their first sex in their teen age.



Premarital sex

368 out of 396 respondents had their first sex before marriage, making it 92.92%.

Only 14 females out of 109 had sex after marriage, making 87.16% females with premarital sex.

Likewise,

Only 14 males out of 284 had sex after marriage, making 95.07% males with premarital sex.

 

Nature of Sex

We had asked if their first sex was casual sex or with someone they were in relationship with.

64.89% had their first sex with someone they were in relationship with.

35.11% had their first sex with someone they were not in relationship and had it as casual sex.

To break it down, gender wise:

116 out of 284 males had their first sex as casual sex (40.84%)

21 out of 109 females had their first sex as casual sex (19.26%)

This pattern says casual sex being usual and normal among youth, especially in their early days of exploring sexual life.

To summarize

  1.  Most urban youths from Nepal seem to become sexually active from age 17.
  2.  Average age of losing virginity among these youth is 20.38 years old.
  3.  Within sexually-active demography, premarital sex holds 92%.
  4.  3 in 10 had their first sex in casual bonding and not with someone in relationship.

Recommendation

This online survey may not give the exact picture of sexual behavioral of Nepalese youths in general, but it pretty much can hint us on the sexual behavior pattern and trend among urban Nepalese youths.

40% and more sexually-active youths were active since their teenage.
Likewise, there are 92% sexually-active youths before marriage itself.

In the country like Nepal where sex is still a taboo and neither at home nor in everyday life people openly talk about it, it’s in a way scary that so many youths are sexually active in a sexually-conservative society with no support system in case of pregnancy outside marriage or STDs.   The lack of sex education, awareness, and support system are putting so much of youths in such a vulnerable position that if anything goes wrong, they are forced to deal with it secretly.

For betterment of all, we recommend strong support system for sexually-active youths to reach out for help when in need.  Also, we recommend active sex education and awareness to build a healthy society.

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Knowledge & Infos

Why government is hell bent for “Nijgadh Airport”

This piece is written giving benefits of doubt to government based on the interview and giving more dimensions to the debate.  Don’t mistake us as supporting the project or advocating for.

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Let’s assume there is no ill intention.  Let’s think Nepal government, or to be more precise, NCP-led government has real good plan and reasoning behind why they want to spend billions of dollars for an airport of Kathmandu size.  Let’s give them all the benefits of doubt – all in good faith.

There is no official statement as such on why but going through old interview in Nepali Times of late Rabindra Adhikari, Aviation Minister then, the man behind bringing back this 90s agenda from coma, had said this in an interview, where he was asked.

Q.  Why this mega Int airport when two more international airports coming up in Bhairawa and Pokhara …

Rabindra Adhikari:  You cannot compare Bhairawa and Pokhara with Nijgad. Not even Kathmandu will match Nijgad Airport’s scale and scope. It will be an international air hub — a real game changer for Nepal’s economy. International flights from over two dozen cities will be landing every day, tens of thousands of passengers will catch connecting flights. Planes will also be making stopovers for refueling. It will be bigger, more advanced and busier than any other airport in Nepal.

Reading between the lines said by Rabindra Adhikari, that is what government is up to — it is making an International Air Hub.

Government is not building this airport to lower air congestion or whatever you call it focusing on Nepalese people alone.  They are up to something bigger and that is Air Hub.

What is Air Hub

Airline hub or hub airport is an airport used by one or more airlines to concentrate passenger traffic and flight operations at a given airport.

To put it in a perspective, let’s say three people from Pokhara are flying to US, 5 from Kathmandu, 2 from Bhairahawa, 1 from Nepalgunj, 10 from Chitwan, and there is only direct flight to US from Nepal.  The airline cannot go to each airport to pick its passengers, so what happens in real world is different airlines bring these people to one airport, from where the direct airline for US to take them.  That one mother of all airport is called Air Hub.

You must be aware that every Nepalese (or Indian) flying to US are generally first taken to Dubai and then from there, will be taken to US.  The Dubai Airport here acts as Air Hub.

That’s basic understanding of Air Hub.

Now, you may say, “But then, even in that case, Nepal does not have that many passengers to cover the handling expenses of Air Hub.”

Exactly.  So that means, government is eyeing to much bigger picture.  They want Nepal to be Air Hub, not to concentrate passengers from different parts of Nepal alone but different countries from South Asia (and other regions) from the continent.  Maybe, they want to be alternate to Dubai or Hong Kong, that Indian flight passengers or Bangaladeshi or Sri Lankian flying to US or Australia to be brought to Nepal, from where direct flights operate.

Air hub is not only about passengers but also to deal with cargoes and many other air-industry related activities.




What’s the benefit

When you are connecting points for everyone, you can earn good money through freight charges, services charges, fuels, and many other trades and charges.  Not just that but also, when you are center point, you attract more businesses around, adding more to GDP.  So basically, huge boost to country’s economy.

Conclusion

Going by the interview, Nijgadh Airport seems like an ambitious investment plan of Nepal government, hoping, if it succeeds to build one, Nepal can get good return along with national pride.  Now, of course, there is a threat from India which only gives one entry point and yet to see how diplomacy will succeed to get India cooperate with Nepal to turn into an Air Hub.

So in case you are thinking and wondering why Nepal needs such a massive airport when we already have 3 international airports, now you have the clue.  Tax payers money is not enough to build such Air Hub by Nepal alone, and it needs to borrow the money from somewhere from someone.  The other side will only give money when they know the plan that seems realistic and feasible.  If Nepal gets the money, there is something really promising in the plan.  At least, let’s hope so, giving the benefits of doubt to the government.

We wrote this piece giving benefits of doubt to government based on the interview and giving more dimensions to the debate.  Don’t mistake us as supporting the project or advocating for.

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