What is Capital Gains Tax?

Capital gains tax is a kind of direct tax charged on profits from capital assets.  Capital assets are the ‘investments’ we make, the ones that generate income like property, gold, shares, mutual funds etc. Currently equity (shares, equity mutual funds) is taxed lesser than all other capital assets. Similarly long term capital gains is higher than short term capital gains, especially for those in the higher tax brackets.

Refer to the table for present capital gains tax rates.

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