A vital role is played by rising and fall of shares on securities and tax on the sale of shares. If the capital gains have a rise and you do not sell the shares, you are going to face loss. And reversibly, if the capital gains have a fall and you sell the share, you are going to face loss.

What are capital gains?

You have to pay tax on capital gains, but the tax is paid if only the asset is sold. Whereas, if you hold the asset and do not sell it, you don’t have to pay capital gains tax. If any asset’s price rises over time, it might be a stock or a share or a real estate property, for example, commercial space, land, house etc. But capital gains tax is not applicable for goods that are consumable, for example, drinks, food materials, clothes, artworks or jewelry.

Short-term Capital Gains:

An immovable asset if being held for 24 months by an investor are subject to short-term capital gain. Whereas, bonds, shares and stocks if held for 12 months or less than 12 months are subjected to short-term capital gain. But if the investor’s securities are not listed on the stock exchange, the short-term capital gain is not applicable to that asset.

Long-Term Capital Gains:

If a property is held for more than 24 months or 2 years and not sold falls under the long-term capital gains. Whereas, for bonds, shares and stocks, the time limit is 12 months or more, if you hold them for 12 months or more, you ae going to pay taxes for log-term capital gains. But for unlisted securities in the stock market, you can pay your long-term capital gains after 24 months.

Therefore, now it must be clear about the taxation policies of securities and share.