How to save tax on capital gains | Ultimate guide to tax harvesting and tax-loss harvesting

FY24 has been a bumper year for equity investors. Many investors would have also booked some gains. But since capital gains from equity are subject to tax, they will also have to part with some of them. Tax harvesting and tax-loss harvesting can help reduce the tax or even nullify it.

Tax harvesting is also called tax-gain harvesting. It came into being after the introduction of the long-term capital gains tax on equity and the subsequent exemption of gains up to Rs 1 lakh from taxation. In this video, we have explained how you can use it to lower your tax outgo.

Tax-loss harvesting has an even wider scope than tax harvesting. Tax-loss harvesting is deliberately booking losses to lower your capital gains and hence tax. You can even carry forward your losses for up to eight financial years. In the video, we have explained how you can use tax-loss harvesting to reduce your tax.

But there are certain things you should keep in mind while practising tax harvesting and tax-loss harvesting. We have discussed them in this video as well.

Chapters
00:00 Introduction
01:41 Tax-Gain Harvesting
07:14 Tax-Loss Harvesting
10:52 Things to keep in mind while using tax harvesting

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