According to the Income Tax Act, all the gains and losses acquired through the sale of capital assets are liable for taxation. That is because any profit that you earn from such a sale falls under the category of income. Therefore, you will have to pay tax on it.
1. LTCG or Long-Term Capital Gains Tax:
An asset is a long-term capital asset if held for more than 24 months. While calculation these taxes, you should also consider factors such as inflation.
2. STCG or Short-Term Capital Gains Tax:
An asset held for 24 months or less is considered a short-term capital asset. Short-term gains are calculated by adding the total income to the Income Tax based on the seller’s tax bracket.