Market Capital Gains Tax refers to the tax levied on profits earned from the sale of capital assets—such as stocks, mutual fund units, real estate, and bonds—in the financial markets. In India, capital gains tax on equity investments is divided into Short-Term Capital Gains (STCG) tax at 20% (for holdings up to 12 months) and Long-Term Capital Gains (LTCG) tax at 12.5% on gains exceeding ₹1.25 lakh per year (for holdings beyond 12 months), as per the Finance Act 2024. Accurate tax planning around capital gains is an essential component of a comprehensive investment strategy.
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