Tax
Capital gains
The profit you make when you sell an asset like shares, funds, or property for more than you paid.
A capital gain is the profit from selling an investment or asset above its purchase price.
How it is taxed depends on the asset and how long you held it, splitting into short-term and long-term.
You only owe this tax when you actually sell. Paper gains on investments you still hold are not taxed.
For example
Buy shares for ₹1L, sell for ₹1.5L, and the ₹50,000 profit is a capital gain that gets taxed based on your holding period.