Capital Gains
A capital gain is the profit earned when an investor or trader sells assets like shares, commodities, futures, options, or currencies for more than their purchase price. Essentially, it’s the gain on invested capital—thus the term 'capital gains.' For example, if someone buys a share for Rs. 1000 and sells it for Rs. 1100, the capital gain is Rs. 100. Taxation on these gains depends on the asset type and holding period. In India, short-term and long-term capital gains are taxed differently, with rates varying based on the asset and duration before the sale.
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