What is Capital Gains Tax?

What is Capital Gains Tax?

Any Profit or Gain that arises from the sale of a ‘capital asset’ comes under the category ‘Income’, and hence you will need to pay tax for that amount in the year in which the transfer of the Capital Asset takes place. This is called Capital Gains Tax. The two types of Capital Gains are Short-Term Capital Gains Tax (STCG) and Long-Term Capital Gains Tax (LTCG).