Terminology

Capital Gains Tax

Capital Gains Tax

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Capital gains tax is a type of tax levied on the profits earned from the sale of securities, such as stocks or real estate. In India, capital gains tax is regulated by the Income-tax Act and involves a tax rate of 10% or 20% on short-term and long-term capital gains, respectively. Investors can minimize capital gains tax through various strategies, including holding securities for a longer period or using tax-saving instruments such as tax-free savings accounts.