Profit is defined as the excess of revenues of a period over its related expenses during an accounting year. It indicates the surplus generated from the regular operations of the business. For example, if the total revenue of a given period is ₹ 6,00,000 and the total expenses are ₹ 5,40,000, the profit is calculated as ₹ 60,000. Profit results in an increase in the investment of the owners.

Gain, on the other hand, is a specific type of profit that arises from events or transactions which are incidental to business. These are not regular business activities but rather peripheral or accidental events that result in a financial benefit.

The main distinction between the two lies in their source. Profit is generated from the routine business activities and is calculated by matching revenues against expenses for a period. It is the primary objective of running a business.

Conversely, a Gain is derived from non-operational activities. It is not the main source of income but occurs due to specific, often one-time events.

Examples of gain include the sale of fixed assets, winning a court case, or an appreciation in the value of an asset. While both profit and gain increase the owner's equity, profit arises from regular operations, whereas gain arises from incidental transactions.