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Use tax-harvesting before March 31, to save Rs 15,625
Summary
Equity shares / Equity mutual funds (LTCG)
Rs 1.25 lakh exemption per financial year; gains above Rs 1.25 lakh taxed at 12.5%
Equity shares / Equity mutual funds (STCG with STT)
Taxed at 20% under Section 111A
Sell long-term equity investments
Book profits on equity investments held for more than 12 months
Realise gains up to Rs 1.25 lakh in a financial year
Zero tax on that portion
No tax is payable on gains up to Rs 1.25 lakh
Reinvest the money to stay invested in the market
Higher purchase price
New higher cost price reduces future taxable capital gains
Sell loss-making investment
Realise capital losses on investments
Use losses to reduce taxable capital gains
Losses can be carried forward for up to 8 assessment years
ITR must be filed before the deadline to carry forward losses
Can be set off against
Long-term capital loss
Only long-term capital gains
Short-term capital loss
Both short-term and long-term capital gains
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Top Tax Saving Mutual Funds
Better Than Fixed Deposits
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SIP’s starting Rs. 500
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Rs 1.25 lakh exemption per financial year; gains above Rs 1.25 lakh taxed at 12.5%
Equity shares / Equity mutual funds (STCG with STT)
Taxed at 20% under Section 111A
Sell long-term equity investments
Book profits on equity investments held for more than 12 months
Realise gains up to Rs 1.25 lakh in a financial year
Zero tax on that portion
No tax is payable on gains up to Rs 1.25 lakh
Reinvest the money to stay invested in the market
Higher purchase price
New higher cost price reduces future taxable capital gains
Sell loss-making investment
Realise capital losses on investments
Use losses to reduce taxable capital gains
Losses can be carried forward for up to 8 assessment years
ITR must be filed before the deadline to carry forward losses
Can be set off against
Long-term capital loss
Only long-term capital gains
Short-term capital loss
Both short-term and long-term capital gains
(Catch all the Personal Finance News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.)
Subscribe to ET Prime and read the ET ePaper online.
The week's best and important stories for all your personal finance needs
Top Tax Saving Mutual Funds
Better Than Fixed Deposits
Low Cost High Return Funds
SIP’s starting Rs. 500
Top Performing Mid Caps
Promising Multi Cap Funds
Top Performing Index Funds
In Case you missed it
Top Searched Companies
AI Description
The article discusses a tax-saving strategy for equity investors called tax-harvesting. It involves selling equity investments before March 31, 2026, to book gains up to Rs 1.25 lakh tax-free each financial year.