Key Points
In other words, it is tax planning, which is a legal approach used to minimize the amount of income tax owed..
Under the old tax regime, apart from the deductions under various sections like Section 80C of the Income-tax Act, investors usually turn to tax loss harvesting to save some more taxes...
If we talk about taxation on capital gains, it is applicable according to the period for which the securities or investments are held..
Tax loss harvesting is the practice of selling a security that has incurred a loss, in order to reduce or offset the capital gains that are subject to taxation...
Scenario 1. Lets assume that an individual has a long-term capital gain (LTCG) of 5 lakh, that means he sold some stocks after holding it for more than a year..
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Your Questions Answered: How does tax-loss harvesting work and can it minimise my tax outgo?
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