Tax-Loss Harvesting Guide: Minimizing
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Maximizing Your Post-Tax Returns
As the financial year draws to a close, smart investors focus on optimizing their tax liabilities. Tax-loss harvesting is a legal strategy to lower your capital gains tax bill. Here is how you can use this technique.
What is tax-loss harvesting and how does it lower tax?
Tax-loss harvesting involves selling loss-making shares to offset capital gains earned on other stocks. By realizing these losses, you reduce your net taxable gains. You can buy back the sold shares later if you want to maintain exposure.
Offset Rules in India
- Long-Term Capital Losses (LTCL): Can only be offset against Long-Term Capital Gains (LTCG).
- Short-Term Capital Losses (STCL): Can be offset against both Short-Term (STCG) and Long-Term Capital Gains (LTCG).
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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