The tax that is levied on the capital gains is referred to as Capital Gains Tax. Capital Gains are the earnings or profits that one earns from the sale of certain specific assets or investments. The tax rates depend on whether the assets or investments were classified as short-term or long term and whether it is in equity or debt or any other asset class.

Capital Gains tax applies to capital assets like:

1. Equity mutual funds or any listed stock̥
2. Listed debt securities like bonds, debentures, etc.̥
3. Zero coupon bonds