New Delhi, April 17 -- Capital gains are the profits generated by an investor after selling a capital asset. These profits are the difference between the selling price and the original purchase price of a capital asset. Capital gains play a key role in determining how an investment has performed over a period of time.

Short-term capital gains (STCG): Profits generated from the sale of listed assets held for less than 12 months are known as STCG. In case of listed securities, including stocks, a Securities Transaction Tax (STT) on STCG is levied at 20 per cent. Other assets, such as real estate, with a holding period of 24 months or less, qualify as short-term capital gains.

Long-term capital gains (LTCG): Profits generated by listed ass...