Traders & Investors: Save Taxes Before March 31st with Tax Loss Harvesting!

With the financial year ending soon, it’s time to optimize your taxes using Tax Loss Harvesting (TLH). If you’ve incurred losses in stocks or mutual funds, you can set them off against capital gains to reduce your taxable income.

How Does Tax Loss Harvesting Work?

1. Identify Loss-Making Investments – Check your portfolio for stocks or mutual funds in the red.
2. Sell the Loss-Making Assets – This helps you book losses and balance your capital gains tax liability.
3. Reinvest If Needed – If you still believe in the asset, you can buy it again after some time to avoid tax complications.

Example:

• Short-Term Capital Gain: ₹1,00,000
• Short-Term Capital Loss: ₹40,000
• Taxable Gain After TLH: ₹60,000 (instead of ₹1,00,000)
• Tax Saved (15% STCG tax): ₹6,000

This simple strategy can significantly reduce your tax outgo! But remember, TLH is only effective before March 31st.

Read the Full Guide on Stox N Tax

We have a detailed breakdown of Tax Loss Harvesting, including rules, conditions, and practical examples. Don’t miss out on this tax-saving opportunity!

Current Market Losses? – Tax Loss Harvesting Can Help in reducing your tax (India) FY 2024-25! – StoxN Tax