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Tax

What is Capital Gains Tax? — Meaning, Definition & Example

Definition

Capital Gains Tax is levied on profit from selling capital assets like stocks, mutual funds, property, or gold. Short-Term Capital Gains (STCG) applies for shorter holding periods, while Long-Term Capital Gains (LTCG) applies for longer holding periods with generally lower rates.

💡 Real Example

Selling equity shares held for 18 months with ₹2 lakh profit: LTCG of ₹75,000 taxed at 12.5% (after ₹1.25L exemption) = ₹9,375 tax.

🇮🇳 Capital Gains Tax in Hindi / हिंदी में

कैपिटल गेन्स टैक्स — कैपिटल गेन्स टैक्स शेयर, म्यूचुअल फंड, प्रॉपर्टी या सोने जैसी पूंजीगत संपत्ति बेचने से हुए लाभ पर लगाया जाता है। STCG कम होल्डिंग अवधि पर और LTCG लंबी अवधि पर लागू होता है।

Capital Gains Tax (Hinglish) — Capital Gains Tax wo tax hai jo stocks, mutual funds, property ya gold jaise assets bechne pe profit pe lagta hai. STCG chhoti holding pe aur LTCG lambi holding pe lagta hai.

❓ Frequently Asked Questions

What is Capital Gains Tax in simple words?
Capital Gains Tax is levied on profit from selling capital assets like stocks, mutual funds, property, or gold. Short-Term Capital Gains (STCG) applies for shorter holding periods, while Long-Term Capital Gains (LTCG) applies for longer holding periods with generally lower rates.
Can you give an example of Capital Gains Tax?
Selling equity shares held for 18 months with ₹2 lakh profit: LTCG of ₹75,000 taxed at 12.5% (after ₹1.25L exemption) = ₹9,375 tax.
What is Capital Gains Tax meaning in Hindi?
In Hindi, Capital Gains Tax is called कैपिटल गेन्स टैक्स. कैपिटल गेन्स टैक्स शेयर, म्यूचुअल फंड, प्रॉपर्टी या सोने जैसी पूंजीगत संपत्ति बेचने से हुए लाभ पर लगाया जाता है। STCG कम होल्डिंग अवधि पर और LTCG लंबी अवधि पर लागू होता है।