Save Tax On Stocks And Mutual Funds: How Tax-Loss Harvesting Works In India

Summary

Investors rush to sort out their portfolios in March to book profits and review mutual fund investments. Tax-loss harvesting is a strategy to reduce capital gains tax burden by selling loss-making investments. You sell the loss-making investment to reduce taxable profits. This is entirely legal under Indian tax law for salaried investors. The sale must be made before March 31 to count in the current financial year's tax calculation.