What is Capital Gain?
When the sale price is more than the purchase price it is known as a capital gain. Capital is of two types first like Equity shares & stocks and the other is like real estate. Two types of capital gains are there one is for short term capital gain and the other is long-term capital gain. In Equity and stocks, if they are sold in less than 1 year, it is known as short term capital gain and capital gain tax is charged, there is no capital gain tax if it is of more than one-year holding. In Real Estate, if a property is sold within 3 years then it would be a short-term capital gain and if sold after 3 years then it is called a long-term capital gain and tax is charged on both short and long-term capital gain. There will be no capital gain tax if the sale proceeds are deposited in a capital gains account and repurchase is done within 2 years of the sale, or 3 years in case of construction.