Capital Gains Tax is a tax imposed on the profit earned from the sale of an asset, such as stocks, bonds, real estate, or other investments. When you sell an asset for more than its original purchase price, the difference between the sale price and the purchase price is considered a capital gain. Capital Gains Tax is then applied to this gain. The rate of Capital Gains Tax can vary depending on various factors, including the type of asset, the holding period, and the individual’s income level. In some countries, there may be different tax rates for short-term and long-term capital gains. Short-term capital gains are typically taxed at higher rates than long-term capital gains. 

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