Long-Term Capital Gain Tax

Long-term capital gain tax is the tax levied on profits from the sale of shares or financial securities held for a minimum period, typically one year. The tax rate on long-term capital gains (LTCG) is generally lower than the rate on short-term capital gains (STCG), which are earned from the sale of assets held for a shorter duration. The tax benefits associated with LTCG are designed to encourage long-term investment, offering investors a lower tax burden compared to short-term investments, which are often taxed at a higher rate.