Capital Gain is the resultant profit, a person gets from the investments made in various assets. When there is a difference between the buying price and the ultimate selling price due to the inflation and the increase in the asset value owing to the demand supply factor, the person gets the capital gains.

Capital gain is derived from the investment in varieties of assets like shares, bonds and other real estates. The longer the investment is held in the hands if the buyer, he gets the long-term capital gain. Even people get sizable gain in the shorter term also when they invest in the stock market which gives profit owing to the volatility in the market.

Many countries levy the tax on the Capital gain enjoyed by the seller taking in to consideration of the index. Even the short-term gain in the share market is taxed and the tax is deducted at source by the broker in most of the countries. When the tax arrived in the case of real estate sales, the index at the time of buying the property and the same at the time of selling is taken into account to arrive at the tax.

Capital Gain tax is collected from the corporates and the individual as well. The tax laws differ from country to country and the rate is also variable. As a responsible Citizen, it is better to pay the tax on time on the profit from various investments and participate in the nation building process.