Rs 94 lakh cr investor wealth wiped from D-St, but tax loss harvesting can help recover setbacks. Here’s how
tax loss harvesting. This strategy can help reduce tax liability, which may be higher this year due to the government's hike in both short-term and long-term capital gains taxes.
In the July 2024 budget, Finance Minister Nirmala Sitharaman revised the STCG and LTCG rates, increasing the short-term capital gains tax from 15% to 20%. Shares held for less than 12 months will be subject to STCG.
LTCG has been increased to 12.5% on income exceeding Rs 1.25 lakh, with shares required to be held for 12 months or more.
Tax loss harvesting involves selling securities, stocks, or mutual funds at a loss to offset taxable capital gains and reduce overall tax liability.
India’s benchmark indices, Nifty and BSE Sensex, have declined nearly 15% from their peak, with broader markets witnessing even sharper selling.
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