Tax loss harvesting ( for capital gain Tax on stocks )
Hello everyone it's important to save when you have earned big Tax loss harvesting is a tax-saving measure where taxpayers can reap benefit from underperforming stocks long-term capital gains are subject to tax, here I am with a huge tax burden this year. You might have some ‘dud’ stocks in your portfolio and these stocks can possibly never get back to the price at which you bought, let alone make money for you. Now is the time to use such loss-making stocks. So this year, when you’ve incurred capital gains, especially long-term capital gains, it will be a good idea to get rid of these dud scripts and utilise the capital loss to reduce the tax liability. This way of reaping benefit from underperforming stocks is called tax loss harvesting. when investors are able to estimate that even in the next assessment year, their capital gains may be high, it’s a common practice to buy back or repurchase the shares sold. This way you are creating a buffer for loss harvesting. Essential...
