How are capital gains on equities taxed?

When you own equity shares, there are two kinds of incomes that are generated. Firstly, there are dividends that are earned by you on a regular basis when the company pays out the dividends. Most profitable companies do pay out dividends to shareholders. The second source of income from equities comes from capital gains. Capital gains represent the profits made on the sale of shares and represent the excess of the sale price less the purchase price. The chart below captures the essence of capital gains and capital losses.