> in india, when you are holding a share in a company for example, its value goes from $1 to $4 in a year. for that financial year, your accountant says "hey. you earned $3 as capital gains", and its appropriately taxed as short term capital gains or long term.
Capital gains taxes in India appear to work the same way as capital gains taxes in the United States[0]:
> Simply put, any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain.
The tax is only incurred at the time of sale. If you don't sell anything then your accountant will report $0 in capital gains, even if the value of your assets (on paper) has increased.
If you are invested in a mutual fund then (at least by US rules) you may have reportable short-term or long-term gains despite not actually selling any shares due to trading activity in the fund; the taxes are passed through to the fund's investors. However, this is unrelated to any change in the value of the fund's shares.
Capital gains taxes in India appear to work the same way as capital gains taxes in the United States[0]:
> Simply put, any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain.
The tax is only incurred at the time of sale. If you don't sell anything then your accountant will report $0 in capital gains, even if the value of your assets (on paper) has increased.
If you are invested in a mutual fund then (at least by US rules) you may have reportable short-term or long-term gains despite not actually selling any shares due to trading activity in the fund; the taxes are passed through to the fund's investors. However, this is unrelated to any change in the value of the fund's shares.
[0] https://cleartax.in/s/capital-gains-income