Pay Zero tax on Stock Market income? Ultimate Guide for Tax Harvesting

Tax harvesting is a strategy used to manage gains and losses in an investment portfolio to minimize tax liability. In India, Short Term Capital Gains (STCG) are taxed at 15%, while Long Term Capital Gains (LTCG) are taxed at 10% after 1 lakh. Only realized gains are subject to taxation, not unrealized gains.

Realized profits can be reduced by offsetting them with realized losses, thereby reducing the overall tax burden. Every transaction is tracked, and failure to report gains accurately can lead to penalties or scrutiny by tax authorities in the future.

Tax harvesting involves strategically selling assets to realize losses, which can then be used to offset taxable gains. Losses can be carried forward for up to eight assessment years for both short term and long term capital gains. However, one must be mindful of exit loads in mutual funds if selling early.

While tax harvesting can reduce tax liability, it's important to consider factors such as the settlement cycle, volatility of stocks, waiting for buying opportunities, and keeping track of transactions. Additionally, FIFO (First In, First Out) method is applied for calculating gains or losses when selling assets. Also be mindful about the charges and brokerage during these transactions.

Tax harvesting should ideally be done before March 31st to take advantage of tax benefits for the current financial year. Overall, tax harvesting is a prudent strategy for managing tax liabilities in investment portfolios.

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[HopesKruses]

With around $120k invested in Palantir stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.

[shiyanvikram]

Bro concept purila idha inum konja theliva oru oru video vaa podunga bro, nice topic but konjam complicated aa iruku episode aa potu puriya vainga

[PavithranR-qt]

Have been searching this info for a while, great explanation brother. please carry on your good work.

[selvadurais]

Ivlo information !!!, very useful. Beginner need to watch this video multiple times

[BECASWATHS]

Super bro I asked this question for long periods even messaged you at Instagram but today make an video of it ❤❤❤❤❤ thanks bro

[Ex-Introverts]

Wow.. I didn't know about carry forward. Thanks a lot bro 🙏🏼

[Diwakarviswanathan]

Thanks much for much needed and insightful video.. greatly appreciated.. 1 clarification regarding buying of stocks on t+2 to get the benefit of ltcg.. does buying only on t+2 will only consider the stock to be long term and avg buying goes up/ down depending on the price? Or we can buy on t+1 or t+3 or greater?

[grabydeal]

bro, ethuvume fulla sollama, cut panni cut panni sollureenga. fulla sollunga puriyala

[sureshsumitha]

வணக்கம் சார், log term capital gain மட்டும் தான் source of income ஆக இருக்கும் போது, Rs.35000/- இருந்தால் கட்டாயமாக IT File செய்ய வேண்டுமா? வேறு income இல்லாதபோது நமது தனிப்பட்ட expenses கழித்து tax கட்ட முடியுமா? தயவுசெய்து அறிவுரை கூறவும் 🙏🏿

[ravichandran-utiz]

Whether inteaday loss during current year can be adjusted in STCG or LTCG during the same year?
Whether intraday loss of previous year can be adjusted against STCG or LTCG? of current year.

[keerthanasakthikumar]

Bro innum konjam details potu video podunga then procedure solunga

[mmurugan]

STP முறையில் ஒரு மியூச்சுவல் ஃபண்டிலிருந்து மற்றோரு ஃபண்டிற்கு லாபத்தை ஒரு வருடத்திற்கு பிறகு இன்வெஸ்ட்மென்ட் செய்து LTCG லிருந்து விடுபட முடியுமா நண்பரே

[kumars]

As per my knowledge the LTCL can offset with Only LTCG, but the STCL can offset with both LTCG & STCG

[aishhwaryakanan]

What is share withholding and payroll withholding. Which is beneficial

[prabhus]

Instead selling, can we use gift or transfer also can use right for tax harvesting

[VijayKumar-fzul]

Apo 5L keela salaried persons captial gains tax katta thevai illaya bro

[SivaKumar-ddzn]

Hi bro, எனது சந்தேகம் எடுத்துக் காட்டாக விளக்கமாக சொல்லிவிட்டீர்கள். Loss Carry forward இப்போது தான் தெரிந்து கொண்டேன். போன FY ல் எனது Auditor ரிடம் விளக்கம் சொல்லுங்கள் என கேட்டேன் அதற்கு அவர் எல்லாம் சரியாக செய்து விட்டோம். என சுருக்கமாக சொல்லிவிட்டார். எனது knowledge க்கு உட்பட்டு இந்த வருடம் plan பண்ணி tax Harvesting செய்துள்ளேன். ITR filling பண்ணும் போது தெரியும் நான் எந்த அளவிற்கு சரியாக செய்துள்ளேன் என தெரிந்துவிடும்.

[justbe]

Hi bro, i already getting Bonds and FD interest yearly, is it included?

Or 1 lac profit from equity separately?
Thanks

[pragadeeshs]

Hello boosan. Can you please tell the difference between equity funds and index funds..? Which one is better to invest...?

[samrajkumar]

Is it necessary for the money to be credited to my bank account in the case of mutual funds?

can I sell and buy the mutual funds on the same day itself for it to be qualified for tax gain harvesting.

Because I heard that if i do on the same day in stocks it will be considered as Intraday transaction by the brokers.

Please clarify