Capital gains tax is a tax applied on profits arising out of selling of securities. There are two types of capital gains tax:
STCG : Short term capital gains tax which is applicable if a person sells any profibale security which is valued more than 1 lakh Rs and held for less than 12 months. The tax applicable on such transaction is 15% of the profits accrued.
LTCG: Long term capital gains tax is applicable at the rate of 10% if the security is held for a period of over 12 months
