When a capital asset (some bond investment or real estate) is transferred to a different owner, the realisation of a net gain exceeding the amount of actual purchase is termed as capital gain and is subjected to certain taxable conditions. Any transfer of capital asset, which could be almost any durable property, is a potential for capital gain. The amount of tax applied on such capital gains also depends upon the time period of the ownership. If a person holds a capital asset for more than thirty-six continuous months, than it is called long-term asset and the gain is referred to as long-term capital gain. The tax on long-term capital gains is higher than the short-term ones.