← GlossaryPolicy & Tax
Capital Gains Tax
Capital gains tax is charged on the profit from selling an asset such as shares, mutual funds, property or gold. Rates differ for short-term gains and long-term gains, depending on how long the asset was held.
Why It Matters
Holding investments longer usually means paying less tax on the profit.
In India
Long-term gains on listed shares above ₹1.25 lakh a year are taxed at 12.5%, while short-term gains are taxed at 20%.