The correct answer is Tax on profit from the sale of a capital asset during a year. • A capital gains tax (CGT) is a tax on the profit realized on the sale of a non-inventory asset. • The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property. Related Concepts: Types of Taxes: • There are different types of tax as follows: • Direct Tax: • It comprises the tax which we pay directly to the government. These taxes are levied on an individual. Different types of Direct taxes are: • Income Tax • Gift Tax • Wealth Tax • Capital Gains Tax • Securities transaction tax • Corporate tax • Indirect Tax: • These taxes are not levied on an individual but on goods and services. • Various types of Indirect taxes are;- • Sales Tax • Services Tax • Goods and Services Tax • Value Added Tax • Customs Duty • Toll Tax