The Government is reportedly considering removal of Capital Gains Tax on foreign portfolio investments in Government Securities to encourage greater foreign capital inflows.
Key Facts: Meaning, Types and Importance
Capital Gains Tax (CGT) is a tax levied on the profit earned from the sale or transfer of a capital asset.
A capital asset includes shares, bonds, mutual funds, land, buildings, and securities.
Tax is imposed only on the gain (profit) and not on the total sale value.
Types of Capital Gains
Short-Term Capital Gain (STCG):
Gain arising from assets held for a shorter prescribed period.
Long-Term Capital Gain (LTCG):
Gain arising from assets held beyond the prescribed holding period.
For listed shares and many listed securities, assets held for more than 12 months are generally treated as long-term.
Profile
Settings
Refer your friends
Sign out
