Definition
Capital gains tax is the tax you pay on the profit earned from selling an asset, such as stocks, property, or gold. The tax is charged only on the gain (profit), not on the total amount received.
Example
For example, if you buy shares for Rupee 10,000 and sell them for Rupee 15,000, your profit is Rupee 5,000. This profit is called a capital gain, and you may have to pay tax on this amount.
Caution
The tax rate can vary depending on how long you hold the asset (short-term or long-term). Rules may also differ for different types of assets, so it is important to understand the applicable tax laws.