Should I pay taxes for Unrealized Profits

1.Should I pay taxes for the Profits which are still in the trading account of the broker and “wallets” of MF aggregators…and have not been transferred into my Bank account.
My logic is to reinvest the profits and transfer back into my bank account after a period of 5-7 years.
So in that 5-7 years , I am not realizing any profits(ie, nothing comes into bank account for me to spend,rather, money goes from my bank account (obtained via salary for which I have filed ITR-1) )

2.What do I do if there are losses for a FY under the same scenario.
(All happening in trading account and “wallets” of brokers and MF or Investing service providers)

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Thank you for your time

Hey @Aby_Math ,

For investor, capital gain taxes are levied when capital asset is transferred or sold. If you have sold or transferred the investments to actual buyer then capital gain would be applicable irrespective of the money credited into bank account or wallets. But, if only unrealised profit is incurred without transfer or sell the investment then capital gain taxes will trigger when you actually sell or transfer the investments.

The scenario will also remain same in case of losses.

For more insights, you can read below article:

I hope, it helps :slightly_smiling_face:

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Thank you Kaushal.You are a godsend. :raised_hands: