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Few Important Points to Note: 1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading. 2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios) 3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
Few Important Points to Note: 1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading. 2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios) 3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
So brother, while filing the IT return how did you show it? I have never filled IT return before but this will be my first time. Can you please tell how to show the net result of this tax harvesting activity
Can you clarify when we have realised a loss why we need to buy that stock again for this tax harvesting concept to take place ? What if we just realised the loss and choose to invest somewhere better?
Instantly buying back will not considered as intraday, because the delivery of buying Is different for intraday (generally called as position) and holding (u can sell only next day)
Yeah that's something you gotta add to calculations + if you do bod or sip in stocks that also complicates the things But speaking from my experience it still helps to save you taxes, but your portfolio size should be large
For extra smart people. To book loss, don't take loss making postion intentionally. The taxes you will save will not be more than what you would have earned by investing your money in right stocks.
Ankur, I think u missed one important point in this video.. 1. In second year onwards, when you are sellling and purchasing again the assets, the prices of stock will change by current date price. Hence, the exact gain for each year will change also..
One important thing missed here is.... what if the value of stocks is high or low while selling or buying the same stock....entire calculation changes,so think about that as well
i guess no because let's say even if you're at a loss at the end of year, you can still buy the same number of stocks with that price and as you invested you are bullish on the stock in long term, which means you expect profit after 5 years or something, you would still earn as much profit as you should after 5 years, plus saving taxes on that, I ain't experienced in the market as of now, so correct me if i am wrong
We need to watch the broker/SEBI/DP/transaction charges while selling and buying immediately. May work for people with small portfolio were they can offset until 1 lakh gain. But may not be possible for bigger portfolios. Also if people have more number of stocks in their portfolio, may have to pay increased brokerage. But good and informative video.
One thing to remember that Ankur might have forgotten is, as you sell the loss-making stocks and instantly tried to buy those stocks then generally in Demat accounts we didn't get the same amount in that day but got it after the settlement period, so if you don't have already cash in Demat account then you can't instantly buy the stock and in 1-2 day the price might change.
@@lakshmi1994-d4t I think re-purchase has to be done before the financial year ends, right? But if you wait for long, the stock price will rise up more.
👌 You've addressed a crucial topic which every new investor should master before entering the market. I hadn't realized earlier the wisdom in selling losses for the benefits of loss harvesting. Also shifting your remaining capital to a faster up-trending stock can cover the loss, rather than relying on hope. In essence, it's important not to be emotional about losses and to find strategic ways to offset them. Additionally, it's almost mandatory to leverage the LTCG relaxation of 1 lakh before March 31st. If not done, you might not know when your gains will be in the multi-lac range in the future, but the opportunity to benefit from the 1 lakh relaxation will be lost, and you'll be unwillingly pay taxes on the entire amount. Just make sure you sell on very bullish day so that your chances of getting same price is maximized. Also little expenses on transaction will be offset. 👍 if you like the comment
One thing i didn't understand that.... "Long term capital gain tax is the tax on selling stock that are to be hold for 1 year also for realising P&L for the ITR we have to file each year so , If this is the case then we have to sell & buy stock on 28th November each year such that we realise the P&L then, how we have to give long term capital gain tax ,in this case we have to give short term capital gain tax because even if we sell & buy stock immediately then for the next year we have to do it just next day of 28th November to realise complete portfolio
Bro, I hope you don't have only 1 stock in your portfolio. U will not only buy and sell the same stock. In this case, you have to transact one by one stocks. U have to sell A if you have A to E stocks and then in next year B or C. B will be long term. I hope you understand my point
As a beginner who don't understand how bitcoin trade really work and you really want to make profit from it, I will advise you to first start working with a professional broker
I am just amazed by you like… how you are so okay to show your personal investment, which is not even a small amount..😎 you have always been transparent to everything, that is the reason I trust you blindly 💓
@@vivekbora7974 nor should you take a stranger named Akansha seriously to respond and reveal your underlying reason to comment on the video as by revealing this you further reduce your probability of getting it liked by the uploader.
@warikoo Excellent video like always. Just a small point for you to note that in US one has to wait for a month (or may be it is 2 months) before one can sell and buy stock for the purpose of tax harvesting. The alternate way is that one can buy first n then sell the next day (FIFO kicks in and does the needful); or sell a stock and then buy a similar stock from same basket.
Considering your example - 1) Buying value will change in every case, if bought stock/mf say Rs- 100 , next time value will be Rs 130-140 so profitability will change. 2) Considering your example it's rare that you can adopt this strategy and makes profit. Since finding such stocks is not easy. 3) Most people in India who are middle class investors rarely pays taxes in case of LTCG they don't make that much profit. 4) No smart investor does this including you. Tell me really have you ever done this ?
One very important aspect that is missed in this video is that by doing this one won't save tax permanently, it's just that one would be able to defer the taxes.
This is just so crazy idea, I'm in Australia, we have to pay taxes on all gains, no min threshold like in India; however, I'm pretty sure I can use it to do some magic stuff. Thanks Ankur!
Hey Ankur, Could you please guide us how can we save taxes while doing SIP , I have 10 Sip worth rupees 5k each which means 50 k in SIP which is basically I am investing due to unplanned expenses.. So in that case how can i save taxes..
I could make out 2 BIG DISADVANTAGES of tax harvesting for LONG-TERM Value investors. Those are in dividends and wealth generation in long term. @ankurwarikoo sir, if u could know, please make a video on that so that people could be wealthy by not indulging in tax harvesting.
There is an issue here… if you sell and buy at same instant then it is considered as intraday trade. So better to sell today at 3:29pm and then buy it next day around same price. In that case it will be counted for tax harvesting
Does Indian Stockmarket follow Wash sale rules ? If so then how can we purchase the same stock immediately after selling it ? Wash Sale Rule: The wash sale rule prohibits traders from claiming a tax deduction for a security sold in a wash sale. A wash sale occurs when you sell a security at a loss and then repurchase the same security, or one substantially identical, within 30 days before or after the sale. The disallowed loss is added to the cost basis of the repurchased security.
Hi Ankur, Could you please do a vedio applying this tax harvesting concept with respect to smallcase investment, as it has different charges (i.e., onetime charge if we exist smallcase for tax harvest etc.,). This will be helpful for those smallcase investors who are born from your vedios 😅. Thanks in advance 🤝
Good analysis guys, I have been making profit of $8,000 every week from eighteen different stocks which I have been trading from January till date, your analysis is good but trading this stock would increase your equity
Hello Ankur, Thanks for this very informative video. Few things to clarify here, 1. In the process of Tax Harvesting - is it necessary to buy the same stock/ MF again? or we an buy anyone that we wud prefer? and What is the logic if it is a 'yes'? 2. Is it correct that we should not buy the same stock the same day to ensure it is not considered as Intraday trading (applicable only for Shares and not MFs?). Wud appreciate you clarification as soon as psbl please. Thanks
Thank you so much for the financial education, This is Umesh Kumar, NRE- working in UAE since 2018, My wife / kids are Indian resident, i am frequent traveler to India to meet them. My wife is work as tution teacher at home and earned 15k monthly 1. Need to know taxation on NRE Mutual fund? 2. Is the TDS refundable during ITR filing? 3. Can my wife invest in mutual fund / stock, if I give money to her as a gift or monthly basis? 4. Any club taxation will applicable in the case 5. Any other useful information or guidance
Hey Ankur if you are selling stocks within one year then how it will be considered as long term capital gain.. 3:45 as so explained... So how we can avail that 1 lakh for short term ( if sold within one year )...
One thing to add is, we need to have that much amount for which we need to invest (whether MF or Stocks), because once you sell, you won't get the money instantly. Money will be credited after 3-5 working days, and if you don't buy instantly then prices might change, and what would be the benefit of doing so much if your compounding takes a hit?
Its t+2 days to get money deposited. Also whenever you sell shares on a demat account, 80 percent of the total sell amount will be provided to you by the broker. So you need to only provide 20 percent to buy back the shares. So if you sell shares worth 1000 rs, the broker will provide 80rs instantly as margin in your account. You can deposit 20rs more and buy back the shares the next day
What if I bought a reliance share (for example) a year ago and again bought it maybe a few weeks ago. Now how will i differentiate in long term wala same share and short term wala share. And how will I know which one I am selling?
Hello @ankurwarikoo I have a question What if I bought 10 shares of X in Feb 2020 5 shares of X in March 2020 15 shares of X in July 2020 20 shares of X in Jan 2021 Total shares that I have of X is 50 How I will calculate one year to this share while selling ? Will I be able to took the advantage of long term capital gain in of these complete 50 shares in Feb 2021 ?
As far as I am aware, loss in stocks cannot be carried forward. Loss from F&O may be you can carry forward the loss as it is treated as a business loss. Not entirely sure about this, so please check with your accountant.
My one friend tried this but selling and buying on same day will be treated as intraday transaction. Hence one day gap is needed. And the next day, prices flew high making losses and third brokerage cost and stt,.stamp duty will be higher
Sir ji, I hope it should not be sarcasm from your side. You are really great in making videos and motivating/inspiring/mentoring people. I follow your you tube channel and I don't even dare to make any video. Just shared my experience through comment. Pls excuse if you feel bad.
@@harshsodhani It's a fake comment just look at the channel's name ... Cross verify by clicking on name of channel and check the videos and number of subscribers. It's a fake account be careful with such idiots
Guys, you must understand and calculate many things before you execute what Ankur said. 1. You can't buyback the same stock on the same day, at least in Zerodha, unless you have the entire capital to execute your buy order. If not, it will attract short credit penalty. 2. Regarding LTCG Tax or STCG tax, we will take the same example of Warikoo; You buy "X" stock for Rs. 500 and sell it for Rs: 600 after 2 days and your profit is Rs. 100. STCG Tax is Rs. 15 @15%. You buy "Y" stock for Rs. 500 and sell it for Rs: 400 after 2 days and your loss is Rs. 100. STCG Tax is not applicable now because your profit will offset with your loss if you file your tax. In this example are we really making profit? The answer is a big "NO". Because you are losing the given below amount for saving just Rs. 15/- You gained Rs. 100 and lost 100 and hence, your net profit is Rs. 0. What you lose : You will be paying charges towards SEBI, STT, Exchange, GST etc... on the buy side and sell side for overnight trading (not intraday) which is almost 0.12%. For stock X : Rs. 500*0.12% and Rs. 600* 0.12% = Rs. 1.32 For stock Y : Rs. 500*0.12% and Rs. 400* 0.12% = Rs. 1.08 DP charges on the sell side: Rs. 13.50 + 2.43 GST = 15.93. This is applicable for both X and Y stocks. Your total loss for this transaction is 1.32+1.08+15.93+15.93 = 34.26 You are losing 34.26 just to save Rs. 15/- and wasting your precious time on the top of everything and all these exercise is on Zero profit. 😂 Now you take a wise decision!!!
Hello Wariko, I have a question, I'm not getting answer of this anywhere. If my income and capital gain both total are bellow 2.5 lakh less than taxable income then is it necessary to file incom tax return? I'm a student and I make around 1K per month which makes it much much less than taxable income. But I sell some of my investment within 1 year and I'm now confuse if I should file income tax return or not.
Hello Ankur, As far I know, I think we shouldn't buy back the stocks we sold immediately for the purpose of tax harvesting as this would create some regulatory issues ( fine and all). We should atleast wait for a day to pass to buy them back. Posting what I heard somewhere, need to check with actual facts..
I agree we should wait at least one day. Because brokers report SFT transactions and send directly to IT to reflect in AIS report. Also they submit report to CAS. Now brokers typically calculate brokerage reports at the end of day. So to make sure this sell and buy are reflected separately , its better to buyback after 1 day Otherwise in worst case, because of netting at EOD you can have BBS instead of BSB (B = buy, S = sell, here the first B reflects the initial buy of stock). So BBS would mean just one shortterm transaction instead of BSB (where we want one desired long term transaction )
Good part in theory, market does not gove 15% yoy...it will consolidate few years, fall few years and blast in 1 year to give 15% cagr eventually, you actually need to have much bigger capital to harvest tax every year and even that may not be possible every year.
Hi, Ankur I have a question regarding your video. In the first scenario, you have shown the technique of selling the stock and buying it before it accumulate 1lkh capital gain. But according to your video, if we do that every year won't we fall under STCG?
There is a 0.12% STT for every transaction, plus you also pay a brokerage. Suppose total is 0.2%. Total transacted amount per share = 2000. You pay Rs. 4 as transaction cost. Tax saved (assuming 20% slab) is Rs. 20. So, this cost is not insignificant.
This method is bogas.. Let me tell you how.. If that stock is good. You will buy it again for 400 rs then if it goes 600 rs then you have to pay taxes on 200 rs rather than 100 rs..!!!
@@chetan_l it's real bogas bcuz anyway u have to pay tax ,if u set off now then in near future after having gain u will pay the tax on set off amount too
Let's make it simple. Suppose you buy a stock worth 200000. After 1 year suppose it has 15% gain and it is valued at 230000. Now you sell that stock and earn 230000. Then instantly buy that same stock by giving up 230000 rupees that you earned a while ago. Now your long term capital gain is 30000 on which 0 tax is applicable. In the next year suppose your 230000 is incremented by 15% again and now it becomes 264500. You now sell that stock for 264500 and buy it for 264500 after a while. Now your long term capital gain for 2nd year is 34500 on which no tax applicable . This process thus goes on
@@CamperSquad677 *Yes Bro in this para u r 100% right , i have understood this concept , BUT , IF I SELL THE STOCK OF ₹230000 ,THEN HOW CAN I BUY IT WITH A CURRENT MARKET PRIZE BECAUSE THE PRIZE /SHARE WILL BE HIGHER ?* THATS THE CONFUSION
@@OmGadhiya yeah, i am also thinking about it, maybe he meant that particular stock you sold or some other stocks with almost same annual returns. This method is effective as you need to understand that the returns are on the total money invested and not on the number of stocks. The money gets compunded, number of stocks is irrelevant in this calculation.
Just a small correction. Not a correction actually. Sell and buy immediately is "within 1-2 days" If sold and bought the next minute it will not be considered under tax harvesting....
I knew this from other you tubers. What I wanted to know here is, if I am doing an SIP on smallcases then how would it be dealt with? Calculating 12 months window will get messy. Please advise.
20 हजार रुपये का टॅक्स बचाने के लिये, 31 हजार रुपये का घाटा करके शेअर बेचे ? कितना टॅक्स save हुवा ? 4 या साडेचार हजार रुपये. और brokarage? 3 बार लगेगा. लगभग 2 हजार तक. तो घाटेमे शेअर बेचने से अच्छा है, partialy प्रॉफिट बुक किया जाए. 😊
Sir can you relate this thing with that of compounding. Can you make an excel sheet that with the help of not only investing but also tax harvesting how can we retire at age 35 or 40.. PLEASE
Thanku very much I have some shares in loss my Demate account bank told me to do this but I thought that more transection means more benifit to bank so I didnot listen to them .But now in this financial year i will do this
When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health.
The market is so volatile now to be depending on bull run to make profit,I advice everyone to trade now with a working program with like that of Kathy Genelle Britton so far she is helping me find investment that has significant growth potential.
@warikoo hello sir I have a doubt you mentioned we need to sell the stocks of less than 1 lakh capital gains so that we don't get taxes and then buy the stock again.. but won't the price of the stocks be different from the day we bought it one year back basically won't it be costly i mean speaking from an averaging perspective it will cost us a lot to buy the same amount of stocks ??
You will get realised profit as well after selling the shares. You are actually utilising the initial invested amount + profit to buy back same shares to cut tax. After you buy back although it may not look good in your portfolio in terms of averaging but you have actually utilised your profit and reduced 1 year of counting on shares.
When you are selling you are selling at that moment's market price so you will be buying the same stocks or same MFs at the same price. That's why they said sell and buy immediately..
Hi Sir, I need to buy insurance but do I really need to think of going to DITTO, NAVI or other sources ?? It would be great if you could make a video on Ditto and Navi comparison I am just married and your videos are an inspiration the way one should plan a life Thank you for you contents I wish we had this education at least from college if not school life where awareness is more important than just a career. What's the point of investing if you one doesn't know taxation. Once again thank you for everything
Sir just my bit. If you sell and buy immediately, that will become speculative and taxed differently like Intraday trade. Rather wait 2 days and buy again to make the transaction totally delivery based. Please correct me if I am wrong
Sir i have heard that when u sell and buy them on the same day it acts as an " intraday transaction ". So ideally we should buy the share after one or more days. Is it true???
hey warikoo!! I want you to please make a video on "Things to do when you turn 18" I'll be turning 18 real soon and I would love to know how should I proceed. Please do include which credit card would be best for when you turn 18. :) thanks in advance. hope to see a video on this topic soon :)
This logic works only for small gain/loss, doesn’t apply to large amount of capital gains. Would appreciate if you can share the idea of Capital gain tax offset against borrowing costs
Have you considered 1% exit load, that exists on most equity mutual funds. In first scenario, we end up incurring about 5000 rupees every time we sell. Net, we end up losing more than 50,000 rupees at the end of 5 years. Am I correct ?
Excellent video with detailed explanation with examples.. there is a small challenge in this approach. If we sell today, we get settlement only after 3 days . By the time we get the money in our bank account, the price would have changed (gone up for buying again). What are your views..
If you book loss and buyback same day then it would be counted as intraday transaction of sell and buy . The original position remains unchanged. So to safe book loss the rebuy should happen following day
after the losses has been offset by tax harvesting, the stock which gave losses would appreciate in value, ultimately, the tax saved by harvesting will have to be paid. Tax harvesting is not just tax saving, it is merely a way to pay the tax later. This might benefit considering inflation.
Hi Ankur.. apparently a very clever idea. But as another person has said there is considerable transaction expenses involved which needs to be added to Rs.4k. yet it is attractive none the less. But you never know once you sell your stocks and again buy it back, due to volatility, you may incur loss of the price falls.
Do this for mutual fund if you are going to continue SIP for more than a year not for stocks as it will unnesesarily increase brokarage cost n you will get benifit of less tax this year but will pay more tax next year as it willl take 1 more year for LTCG if you book STCG again then you pay extra 5 % tax as your stock prize wont wait for your LTCG to kick in as you are buying the same stock again meaning you want to hold on to it for profit. if it happens after 1 year then you will still pay 10% as we all aspire to make more than 1 lakh profit in every year for smaller folios in intial stages use it in MUTUAL FUNDS . for DIrect stock investing ingnore TAXES follow your rules for stock picking . I find your videos very helpful and just wanted to put my point as I have done this with stock and it was counter productive as the stock rate came back inless than 6 months . I paid more taxes . so I do this only for mutual fund in march month.
When I sell and immediately purchase the same share on the acquired capital gain amount, say "5,75,000", the price at which the share is computed will be the current price, not the previous price, and the stock quantity also will be lowered.
Correct me, but in my opinion Tax harvesting can works for LTCG ( exemption of 1L every year) but it won't work for STCG as the moment you but it again at Loss price then in some time when it came to Profit then your profit will be calculated based on that Lower price. And you will end up paying same amont of TAX for STCG.
1st method is something I use, like selling profit of 1lakh, but I do not like second method as to me it seems postponing the taxes, things you sell in loss will be considered bought on low price from time onwards so in future when you sell it in profit you have to pay extra money and exchange taxes are additional.
Let i bought a share X @100 ,after fee days it come @50 i booked my -50 (realised loss) Than i book my rs 50 profit on Y share .So my tax on Y share is 0.but if my X share give me profit and goes 50 to 150 and i book my 100 profite on it charge me same tax 😂
Bech k same day kharido ge to intraday mai chala jayega Jo ki speculation income mai count hoga Agar apko sahi mai tax save karna ho to sell karne k 2nd day wapas buy karna hoga Please correct me if i am wrong
Excellent video. Thanks for sharing, Ankur I have two questions. The first one is, for example. I buy ten shares of a stock every month. for 2021, I bought 120 shares, and the series continues for this year. Now I want to book my profit. How does Zerodha consider my long-term or short-term gain? Does it know which stocks I'm selling? Is the one-year consideration pro-rate based? The shares I bought in December 2021 will become long-term only after December 2022. again, the question is how Zerodha knows which shares I'm selling. Second one: is the above tax regime applies to NRI accounts? I have a Zerodha NRI trading account. Would you please help with a video specific to NRIs who trade/invest in India? Best Regards Anil Jangra
What do you think of investment advisory service providing companies? Would you suggest hiring them at any given point of time? Is there a list of trusted, good ones that you can suggest. I would really appreciate if you can make a video on such companies. Thanks.
Hi Ankur, your videos are great. I want to add something to this video. Someone might point this out already. For the USA you want to check out the “Wash sale rule”. According to this if you immediately buy your stock you cannot claim that loss for tax savings. You have to wait for at least 30 days.
Thanks Sir for all the knowledge sharing. Specially middle class people lack clarity on what is Investing. And you have brought lot of clarity in peoples mindset. My question is, 1. Is there any way for tax harvesting for only SIP investors because the ones you explained works for sumsum in my opinion? 2. Suppose i invest in Quant Active mutual fund, Do they keep changing companies present in this fund and invest in them based on assessing the current market situation every other day Or They stick with them forever Or They change after longterm(>5 years) Thank you again!
Crystal clear video ✓✓✓ great!!! I need a clarification. Suppose i have investments in 5 different MFs it's all on random lumpsum basis ( no SIP) except in one in which i hv made one time lumpsum of ₹ 15 lakhs in Aug 2021. Now my question is should i or can i do the instant sale n repurchase ( that's allowed in my fund) every year starting from this financial year 2023-23 to harvest LTCG only in one MF or all Funds just by default so that date of aquisition is always remain just 1 year old.
Hii Ankur sir I have been watching your videos since very Long and they are very informative to me ♥️ . Thanks for bringing such a informative content with us . And (I want to know about Japan index nikkei that since 1991 it only goes to 12 % till now so how does that possible what is the reason behind that can you guide me ..) if it is possible than please make a video on thus it will be beneficial for us .
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But the main challenge here is, we do not remember which stock we bought when exactly.
F & O ke Taxes ka details video
@Rajashekhar Nari you can find tour holding details whether or not it is long term or not. First see it then sell
Few Important Points to Note:
1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading.
2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios)
3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
Hello sir
Can we save tax on options ,swing ,intraday trading
Few Important Points to Note:
1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading.
2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios)
3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
So brother, while filing the IT return how did you show it? I have never filled IT return before but this will be my first time. Can you please tell how to show the net result of this tax harvesting activity
Can you clarify when we have realised a loss why we need to buy that stock again for this tax harvesting concept to take place ? What if we just realised the loss and choose to invest somewhere better?
Thanks Rohit
bhai jo shares aap kharid k same day bechoge to intraday kehlayega. Agar aap already owned shares ko sell karke fir buy karenge to intraday nhi hoga
Instantly buying back will not considered as intraday, because the delivery of buying Is different for intraday (generally called as position) and holding (u can sell only next day)
While calculating tax difference there should be one consideration for brokarage charges as we are selling and buying stocks to keep tax low.
also the securities transaction tax
Yeah that's something you gotta add to calculations + if you do bod or sip in stocks that also complicates the things
But speaking from my experience it still helps to save you taxes, but your portfolio size should be large
Inse jyada ummed naa rakho
Ye ameer hain aur doosron ko hone nhee denge
Inka maheene ka kharcha 3 lakh hai
Hamari income hogi 3 lakh wo bhi annually
For extra smart people.
To book loss, don't take loss making postion intentionally. The taxes you will save will not be more than what you would have earned by investing your money in right stocks.
True
Ankur, I think u missed one important point in this video..
1. In second year onwards, when you are sellling and purchasing again the assets, the prices of stock will change by current date price. Hence, the exact gain for each year will change also..
One important thing missed here is.... what if the value of stocks is high or low while selling or buying the same stock....entire calculation changes,so think about that as well
yeah thts my point...bechne ke baad dobara buy krne pe profit thode hi hoga...fir ruko 5 saal...
i guess no because let's say even if you're at a loss at the end of year, you can still buy the same number of stocks with that price and as you invested you are bullish on the stock in long term, which means you expect profit after 5 years or something, you would still earn as much profit as you should after 5 years, plus saving taxes on that, I ain't experienced in the market as of now, so correct me if i am wrong
Excellent content Ankur.
Now, I feel a bit relieved that my loss making stocks can have some utilities too 🤣
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
We need to watch the broker/SEBI/DP/transaction charges while selling and buying immediately. May work for people with small portfolio were they can offset until 1 lakh gain. But may not be possible for bigger portfolios. Also if people have more number of stocks in their portfolio, may have to pay increased brokerage. But good and informative video.
One thing to remember that Ankur might have forgotten is, as you sell the loss-making stocks and instantly tried to buy those stocks then generally in Demat accounts we didn't get the same amount in that day but got it after the settlement period, so if you don't have already cash in Demat account then you can't instantly buy the stock and in 1-2 day the price might change.
Bro.. You get the 80% amount instantly and the rest amount credit after T+2 days.. So you can buy 80% stocks instantly...
You can buy sell on same day. Problem is not money here. It will be considered as intraday. You need to buy next day at any cost.
@@lakshmi1994-d4t I think re-purchase has to be done before the financial year ends, right? But if you wait for long, the stock price will rise up more.
Very very nice Ankur Sir 👌
INVESTING MAKE UP THE TOP-NOTCH
HEMISPHERE OF WEALTH, THAT IS MORE
REASON ONE SHOULD SAVE AND INVEST TO
SECURE MORE PROFIT AND ENSURE SUCCESS
That is why I had to start forex trading
2months ago and now am making benefits
from it.
Thanks for introducing me to Mr Albert Renshu profit of over $44,000 Us dollar
My first investment with Mr Albert gave
and I can even say he's the most sincere
broker I have known.
O' Yes I'm a living testimony of Mr Albert Renshu
No video explains tax harvesting such thoroughly...They only show what it is but doesn't dig deeper into it... The magic of excel sheet ❤️
I am thinking of closing my demat account. Na rahega bass na rahegi basri
Excellent ❤
😂😂
@@SaurabhSingh-om7xm 😆
Same hi main soch rahi ho
APKI SOCH KA ACHAR DALNA HA, TUM BAAD MA JAO BABA
👌 You've addressed a crucial topic which every new investor should master before entering the market. I hadn't realized earlier the wisdom in selling losses for the benefits of loss harvesting. Also shifting your remaining capital to a faster up-trending stock can cover the loss, rather than relying on hope. In essence, it's important not to be emotional about losses and to find strategic ways to offset them. Additionally, it's almost mandatory to leverage the LTCG relaxation of 1 lakh before March 31st. If not done, you might not know when your gains will be in the multi-lac range in the future, but the opportunity to benefit from the 1 lakh relaxation will be lost, and you'll be unwillingly pay taxes on the entire amount. Just make sure you sell on very bullish day so that your chances of getting same price is maximized. Also little expenses on transaction will be offset. 👍 if you like the comment
One of the most informative videos uploaded on the channel. Loved it!
One thing i didn't understand that....
"Long term capital gain tax is the tax on selling stock that are to be hold for 1 year also for realising P&L for the ITR we have to file each year so ,
If this is the case then we have to sell & buy stock on 28th November each year such that we realise the P&L then, how we have to give long term capital gain tax ,in this case we have to give short term capital gain tax because even if we sell & buy stock immediately then for the next year we have to do it just next day of 28th November to realise complete portfolio
Bro, I hope you don't have only 1 stock in your portfolio. U will not only buy and sell the same stock. In this case, you have to transact one by one stocks. U have to sell A if you have A to E stocks and then in next year B or C. B will be long term. I hope you understand my point
@@kapilagrawal8338 i have similar questions
you do this one stock for once and then you dont for entire financial year ?
Hello what is the best way to get started with bitcoin investment or Forex trade cos I have been making my personal research for a while now
As a beginner who don't understand how bitcoin trade really work and you really want to make profit from it, I will advise you to first start working with a professional broker
+14
09
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Sir I love this video this is the best video of tax saving I've ever seen this is a really incredible video
A video on ITR filing related to equity stocks is appreciated ☺️
I am just amazed by you like… how you are so okay to show your personal investment, which is not even a small amount..😎 you have always been transparent to everything, that is the reason I trust you blindly 💓
You should not trust blindly though
@@s0ulweaver neither, you should believe any random Vivek buttering and being nice to a RUclipsr. He might be doing this for a ♥️
@@vivekbora7974 nor should you take a stranger named Akansha seriously to respond and reveal your underlying reason to comment on the video as by revealing this you further reduce your probability of getting it liked by the uploader.
@@s0ulweaver I have ample amount of heart by Ankur, the only thing lacking in my life was a reply by a stranger named Akansha. Today I got it though.
@@vivekbora7974 lol that you did
@warikoo Excellent video like always. Just a small point for you to note that in US one has to wait for a month (or may be it is 2 months) before one can sell and buy stock for the purpose of tax harvesting. The alternate way is that one can buy first n then sell the next day (FIFO kicks in and does the needful); or sell a stock and then buy a similar stock from same basket.
Considering your example -
1) Buying value will change in every case, if bought stock/mf say Rs- 100 , next time value will be Rs 130-140 so profitability will change.
2) Considering your example it's rare that you can adopt this strategy and makes profit. Since finding such stocks is not easy.
3) Most people in India who are middle class investors rarely pays taxes in case of LTCG they don't make that much profit.
4) No smart investor does this including you. Tell me really have you ever done this ?
One very important aspect that is missed in this video is that by doing this one won't save tax permanently, it's just that one would be able to defer the taxes.
No. You actually do end up saving tax.
That’s not true. You actually save taxes
@@warikoo how?
@@s0ulweaver how?
@@warikoo if you sell shares and buyback on same day u also get penalty for doing it! so it better to buy after 2 days !
This is just so crazy idea, I'm in Australia, we have to pay taxes on all gains, no min threshold like in India; however, I'm pretty sure I can use it to do some magic stuff. Thanks Ankur!
Hey Ankur, Could you please guide us how can we save taxes while doing SIP , I have 10 Sip worth rupees 5k each which means 50 k in SIP which is basically I am investing due to unplanned expenses.. So in that case how can i save taxes..
I think tax harvesting will affect the compounding in case of SIP. Please help, @warikoo
Good one sir. Thanks for providing this idea to share with my audience as well 👍🙂
I could make out 2 BIG DISADVANTAGES of tax harvesting for LONG-TERM Value investors. Those are in dividends and wealth generation in long term. @ankurwarikoo sir, if u could know, please make a video on that so that people could be wealthy by not indulging in tax harvesting.
You could save more by selling only when it is around 95000. So that the next capital becomes more
Thanks for watching, For more info and advice on stock and investment!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
That's actually very clever Ankur. Thanks for the advice.
There is an issue here… if you sell and buy at same instant then it is considered as intraday trade. So better to sell today at 3:29pm and then buy it next day around same price. In that case it will be counted for tax harvesting
Sir, how does tax harvesting work if we are on sip on mutual funds and we are keeping it for more than 30 years or so?
Does Indian Stockmarket follow Wash sale rules ? If so then how can we purchase the same stock immediately after selling it ?
Wash Sale Rule: The wash sale rule prohibits traders from claiming a tax deduction for a security sold in a wash sale. A wash sale occurs when you sell a security at a loss and then repurchase the same security, or one substantially identical, within 30 days before or after the sale. The disallowed loss is added to the cost basis of the repurchased security.
Hi Ankur,
Could you please do a vedio applying this tax harvesting concept with respect to smallcase investment, as it has different charges (i.e., onetime charge if we exist smallcase for tax harvest etc.,).
This will be helpful for those smallcase investors who are born from your vedios 😅.
Thanks in advance 🤝
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
Just to give a perspective - You can save maximum 10k a year by harvesting.
Good analysis guys, I have been making profit of $8,000 every week from eighteen different stocks which I have been trading from January till date, your analysis is good but trading this stock would increase your equity
How to get to you
Do you have a handle
I haven't been doing too well on stock trading
I need more insight on it
You can reach me through my mail
Hello Ankur, Thanks for this very informative video. Few things to clarify here, 1. In the process of Tax Harvesting - is it necessary to buy the same stock/ MF again? or we an buy anyone that we wud prefer? and What is the logic if it is a 'yes'? 2. Is it correct that we should not buy the same stock the same day to ensure it is not considered as Intraday trading (applicable only for Shares and not MFs?). Wud appreciate you clarification as soon as psbl please. Thanks
Sir Aap ne tu "Zor Zor Bolke sab ko scheme bata diye " 😁😂😂😂
Thank you so much for the financial education, This is Umesh Kumar, NRE- working in UAE since 2018, My wife / kids are Indian resident, i am frequent traveler to India to meet them. My wife is work as tution teacher at home and earned 15k monthly
1. Need to know taxation on NRE Mutual fund?
2. Is the TDS refundable during ITR filing?
3. Can my wife invest in mutual fund / stock, if I give money to her as a gift or monthly basis?
4. Any club taxation will applicable in the case
5. Any other useful information or guidance
Make a video on... How inflation is a good thing for economy?
Pagal - Wagal Toh Nahi Ho Gayi Ho
Are u mad ?????
@@shubham82 these are bjp IT bots
Who is defending govt failure so that they can win in 2024 election
@@shubham82 do some research.. Before making any statement
@@bhavyatrivediofficial hike in petrol price is also good for india 😂😂😡
if you know what is short and long term tax... start video from 5:50
Hey Ankur if you are selling stocks within one year then how it will be considered as long term capital gain.. 3:45 as so explained... So how we can avail that 1 lakh for short term ( if sold within one year )...
so sell after one year
One thing to add is, we need to have that much amount for which we need to invest (whether MF or Stocks), because once you sell, you won't get the money instantly. Money will be credited after 3-5 working days, and if you don't buy instantly then prices might change, and what would be the benefit of doing so much if your compounding takes a hit?
Its t+2 days to get money deposited. Also whenever you sell shares on a demat account, 80 percent of the total sell amount will be provided to you by the broker. So you need to only provide 20 percent to buy back the shares. So if you sell shares worth 1000 rs, the broker will provide 80rs instantly as margin in your account. You can deposit 20rs more and buy back the shares the next day
What if I bought a reliance share (for example) a year ago and again bought it maybe a few weeks ago. Now how will i differentiate in long term wala same share and short term wala share. And how will I know which one I am selling?
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
First in first out. Which means stocks bought first will be considered while selling
Hello @ankurwarikoo
I have a question
What if I bought 10 shares of X in Feb 2020
5 shares of X in March 2020
15 shares of X in July 2020
20 shares of X in Jan 2021
Total shares that I have of X is 50
How I will calculate one year to this share while selling ?
Will I be able to took the advantage of long term capital gain in of these complete 50 shares in Feb 2021 ?
For mutual funds, do we need to wait till settlement after selling before buying it again? Or can we do it even when it's under process?
As far as I am aware, loss in stocks cannot be carried forward.
Loss from F&O may be you can carry forward the loss as it is treated as a business loss.
Not entirely sure about this, so please check with your accountant.
My one friend tried this but selling and buying on same day will be treated as intraday transaction. Hence one day gap is needed. And the next day, prices flew high making losses and third brokerage cost and stt,.stamp duty will be higher
Sir ji, I hope it should not be sarcasm from your side. You are really great in making videos and motivating/inspiring/mentoring people. I follow your you tube channel and I don't even dare to make any video. Just shared my experience through comment. Pls excuse if you feel bad.
Fake reply scammer
@@harshsodhani It's a fake comment just look at the channel's name ... Cross verify by clicking on name of channel and check the videos and number of subscribers. It's a fake account be careful with such idiots
Guys, you must understand and calculate many things before you execute what Ankur said.
1. You can't buyback the same stock on the same day, at least in Zerodha, unless you have the entire capital to execute your buy order. If not, it will attract short credit penalty.
2. Regarding LTCG Tax or STCG tax, we will take the same example of Warikoo; You buy "X" stock for Rs. 500 and sell it for Rs: 600 after 2 days and your profit is Rs. 100. STCG Tax is Rs. 15 @15%. You buy "Y" stock for Rs. 500 and sell it for Rs: 400 after 2 days and your loss is Rs. 100. STCG Tax is not applicable now because your profit will offset with your loss if you file your tax.
In this example are we really making profit? The answer is a big "NO". Because you are losing the given below amount for saving just Rs. 15/-
You gained Rs. 100 and lost 100 and hence, your net profit is Rs. 0.
What you lose : You will be paying charges towards SEBI, STT, Exchange, GST etc... on the buy side and sell side for overnight trading (not intraday) which is almost 0.12%.
For stock X : Rs. 500*0.12% and Rs. 600* 0.12% = Rs. 1.32
For stock Y : Rs. 500*0.12% and Rs. 400* 0.12% = Rs. 1.08
DP charges on the sell side: Rs. 13.50 + 2.43 GST = 15.93. This is applicable for both X and Y stocks.
Your total loss for this transaction is 1.32+1.08+15.93+15.93 = 34.26
You are losing 34.26 just to save Rs. 15/- and wasting your precious time on the top of everything and all these exercise is on Zero profit. 😂
Now you take a wise decision!!!
Hello Wariko, I have a question, I'm not getting answer of this anywhere.
If my income and capital gain both total are bellow 2.5 lakh less than taxable income then is it necessary to file incom tax return?
I'm a student and I make around 1K per month which makes it much much less than taxable income. But I sell some of my investment within 1 year and I'm now confuse if I should file income tax return or not.
@Nirmalya Sarkar If your total income is less than 2.5 lakhs then you are not mandated to file your IT returns.
@@ashwinnair5858 thankyou so much for the information, it is immensely helpful for me.
This is absolutely gold!
Sorry I'm not sharing this with anyone...
Hello Ankur,
As far I know, I think we shouldn't buy back the stocks we sold immediately for the purpose of tax harvesting as this would create some regulatory issues ( fine and all). We should atleast wait for a day to pass to buy them back.
Posting what I heard somewhere, need to check with actual facts..
I agree we should wait at least one day. Because brokers report SFT transactions and send directly to IT to reflect in AIS report. Also they submit report to CAS.
Now brokers typically calculate brokerage reports at the end of day. So to make sure this sell and buy are reflected separately , its better to buyback after 1 day
Otherwise in worst case, because of netting at EOD you can have BBS instead of BSB (B = buy, S = sell, here the first B reflects the initial buy of stock). So BBS would mean just one shortterm transaction instead of BSB (where we want one desired long term transaction )
Good part in theory, market does not gove 15% yoy...it will consolidate few years, fall few years and blast in 1 year to give 15% cagr eventually, you actually need to have much bigger capital to harvest tax every year and even that may not be possible every year.
Hi, Ankur I have a question regarding your video. In the first scenario, you have shown the technique of selling the stock and buying it before it accumulate 1lkh capital gain. But according to your video, if we do that every year won't we fall under STCG?
After completion of 1 year on that stock / sip
Is 1 lakh profit is tax free in short term capital gain
There is a 0.12% STT for every transaction, plus you also pay a brokerage. Suppose total is 0.2%. Total transacted amount per share = 2000. You pay Rs. 4 as transaction cost. Tax saved (assuming 20% slab) is Rs. 20. So, this cost is not insignificant.
This method is bogas.. Let me tell you how.. If that stock is good. You will buy it again for 400 rs then if it goes 600 rs then you have to pay taxes on 200 rs rather than 100 rs..!!!
Bro your 200 rs gain will offset by 100 rs loss and you have to pay tax on 100
@@vanshgirdhar9456lekin woh already setoff kar chuka hoga tab😂,sahi point pakda h yeh
Well, what about loss carry forward? That will help in offsetting the higher gains (say, eight years later), right?
@@chetan_l it's real bogas bcuz anyway u have to pay tax ,if u set off now then in near future after having gain u will pay the tax on set off amount too
What about the brokerage and other charges which will be added in every transaction
Mai job aur trading karta hu kounsa ITR Form bharna chahiye? Ek demo b dikhayiye sir
Didn't understood, if I sale my stocks worth 175000 and then immediately buy it at the current prize/ share then how it would be effective ?
Let's make it simple. Suppose you buy a stock worth 200000. After 1 year suppose it has 15% gain and it is valued at 230000. Now you sell that stock and earn 230000. Then instantly buy that same stock by giving up 230000 rupees that you earned a while ago. Now your long term capital gain is 30000 on which 0 tax is applicable. In the next year suppose your 230000 is incremented by 15% again and now it becomes 264500. You now sell that stock for 264500 and buy it for 264500 after a while. Now your long term capital gain for 2nd year is 34500 on which no tax applicable . This process thus goes on
@@CamperSquad677 *Yes Bro in this para u r 100% right , i have understood this concept , BUT , IF I SELL THE STOCK OF ₹230000 ,THEN HOW CAN I BUY IT WITH A CURRENT MARKET PRIZE BECAUSE THE PRIZE /SHARE WILL BE HIGHER ?* THATS THE CONFUSION
@@OmGadhiya yeah, i am also thinking about it, maybe he meant that particular stock you sold or some other stocks with almost same annual returns. This method is effective as you need to understand that the returns are on the total money invested and not on the number of stocks. The money gets compunded, number of stocks is irrelevant in this calculation.
@@CamperSquad677 short term k lie 1 lac wali chhut h ya nhi please bataye 🙏
Just a small correction. Not a correction actually. Sell and buy immediately is "within 1-2 days"
If sold and bought the next minute it will not be considered under tax harvesting....
अगर दो एकाउंट है तो कर सकते हैं।
I knew this from other you tubers. What I wanted to know here is, if I am doing an SIP on smallcases then how would it be dealt with? Calculating 12 months window will get messy. Please advise.
It to be monitored with number of units
20 हजार रुपये का टॅक्स बचाने के लिये, 31 हजार रुपये का घाटा करके शेअर बेचे ? कितना टॅक्स save हुवा ? 4 या साडेचार हजार रुपये. और brokarage? 3 बार लगेगा. लगभग 2 हजार तक. तो घाटेमे शेअर बेचने से अच्छा है, partialy प्रॉफिट बुक किया जाए. 😊
Sir can you relate this thing with that of compounding. Can you make an excel sheet that with the help of not only investing but also tax harvesting how can we retire at age 35 or 40.. PLEASE
Thanku very much
I have some shares in loss my Demate account bank told me to do this but I thought that more transection means more benifit to bank so I didnot listen to them .But now in this financial year i will do this
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health.
The market is so volatile now to be depending on bull run to make profit,I advice everyone to trade now with a working program with like that of Kathy Genelle Britton so far she is helping me find investment that has significant growth potential.
@warikoo hello sir I have a doubt you mentioned we need to sell the stocks of less than 1 lakh capital gains so that we don't get taxes and then buy the stock again.. but won't the price of the stocks be different from the day we bought it one year back basically won't it be costly i mean speaking from an averaging perspective it will cost us a lot to buy the same amount of stocks ??
You will get realised profit as well after selling the shares. You are actually utilising the initial invested amount + profit to buy back same shares to cut tax. After you buy back although it may not look good in your portfolio in terms of averaging but you have actually utilised your profit and reduced 1 year of counting on shares.
When you are selling you are selling at that moment's market price so you will be buying the same stocks or same MFs at the same price. That's why they said sell and buy immediately..
Seemed counterintuitive at first but such a useful approach. Thanks Ankur! 😅👍
Hi Sir,
I need to buy insurance but do I really need to think of going to DITTO, NAVI or other sources ??
It would be great if you could make a video on Ditto and Navi comparison
I am just married and your videos are an inspiration the way one should plan a life
Thank you for you contents
I wish we had this education at least from college if not school life where awareness is more important than just a career.
What's the point of investing if you one doesn't know taxation.
Once again thank you for everything
Sir just my bit.
If you sell and buy immediately, that will become speculative and taxed differently like Intraday trade.
Rather wait 2 days and buy again to make the transaction totally delivery based.
Please correct me if I am wrong
Sir i have heard that when u sell and buy them on the same day it acts as an " intraday transaction ". So ideally we should buy the share after one or more days. Is it true???
Your correct✅
Correct
if you sell shares and buyback on same day u also get penalty for doing it! so it better to buy after 2 days !
Sir you just explained a complex thing in the easiest way. Loved it ❤
😂😂5k savetax and loose 15k
How?
How
For big investment @@soumit.
hey warikoo!!
I want you to please make a video on "Things to do when you turn 18"
I'll be turning 18 real soon and I would love to know how should I proceed.
Please do include which credit card would be best for when you turn 18. :)
thanks in advance. hope to see a video on this topic soon :)
This logic works only for small gain/loss, doesn’t apply to large amount of capital gains.
Would appreciate if you can share the idea of Capital gain tax offset against borrowing costs
Amazing tips shared with love.
We can see your love for us.
🙏🙏😌👍
Have you considered 1% exit load, that exists on most equity mutual funds. In first scenario, we end up incurring about 5000 rupees every time we sell. Net, we end up losing more than 50,000 rupees at the end of 5 years. Am I correct ?
Excellent video with detailed explanation with examples.. there is a small challenge in this approach. If we sell today, we get settlement only after 3 days . By the time we get the money in our bank account, the price would have changed (gone up for buying again). What are your views..
If you book loss and buyback same day then it would be counted as intraday transaction of sell and buy . The original position remains unchanged. So to safe book loss the rebuy should happen following day
ye Aapne 1lakh par bataya yadi kisi ko 5- 6 lakh ka profit ho to vo 90% tak ke se tax save kar sakta hai ye bataye
after the losses has been offset by tax harvesting, the stock which gave losses would appreciate in value, ultimately, the tax saved by harvesting will have to be paid.
Tax harvesting is not just tax saving, it is merely a way to pay the tax later. This might benefit considering inflation.
Hi Ankur.. apparently a very clever idea. But as another person has said there is considerable transaction expenses involved which needs to be added to Rs.4k. yet it is attractive none the less. But you never know once you sell your stocks and again buy it back, due to volatility, you may incur loss of the price falls.
Do this for mutual fund if you are going to continue SIP for more than a year not for stocks as it will unnesesarily increase brokarage cost n you will get benifit of less tax this year but will pay more tax next year as it willl take 1 more year for LTCG if you book STCG again then you pay extra 5 % tax as your stock prize wont wait for your LTCG to kick in as you are buying the same stock again meaning you want to hold on to it for profit. if it happens after 1 year then you will still pay 10% as we all aspire to make more than 1 lakh profit in every year for smaller folios in intial stages use it in MUTUAL FUNDS . for DIrect stock investing ingnore TAXES follow your rules for stock picking .
I find your videos very helpful and just wanted to put my point as I have done this with stock and it was counter productive as the stock rate came back inless than 6 months . I paid more taxes . so I do this only for mutual fund in march month.
When I sell and immediately purchase the same share on the acquired capital gain amount, say "5,75,000", the price at which the share is computed will be the current price, not the previous price, and the stock quantity also will be lowered.
Stock quantity will be same if u buy with both profit and invested amnt
Correct me, but in my opinion Tax harvesting can works for LTCG ( exemption of 1L every year) but it won't work for STCG as the moment you but it again at Loss price then in some time when it came to Profit then your profit will be calculated based on that Lower price. And you will end up paying same amont of TAX for STCG.
Need to be cautious of wash sale rule when selling on loss and rebuying within 30 days. You would only lose brokerage amount and not adjust any loss.
Very neatly explained and your helping many salaried class to overcome burden of tax thru stock/MF investing!
इसमें dilevery छोडनी पड़ेगी फिर Next day Buy करने पर ऐसा होगा नहीं तो sepculation में चला जायेगा क्या ऐसा ठीक है ?
watching this video about 1 year later but still the knowledge gained by this video
rocks
If you buy instantly that will be counted as intraday... and if you sell next day then days will be less then year...
1st method is something I use, like selling profit of 1lakh, but I do not like second method as to me it seems postponing the taxes, things you sell in loss will be considered bought on low price from time onwards so in future when you sell it in profit you have to pay extra money and exchange taxes are additional.
Let i bought a share X @100 ,after fee days it come @50 i booked my -50 (realised loss) Than i book my rs 50 profit on Y share .So my tax on Y share is 0.but if my X share give me profit and goes 50 to 150 and i book my 100 profite on it charge me same tax 😂
it's amazing, I learnt new today from this video thanks man 🙌🙌
Bech k same day kharido ge to intraday mai chala jayega
Jo ki speculation income mai count hoga
Agar apko sahi mai tax save karna ho to sell karne k 2nd day wapas buy karna hoga
Please correct me if i am wrong
Excellent video. Thanks for sharing, Ankur
I have two questions.
The first one is, for example. I buy ten shares of a stock every month. for 2021, I bought 120 shares, and the series continues for this year. Now I want to book my profit. How does Zerodha consider my long-term or short-term gain? Does it know which stocks I'm selling? Is the one-year consideration pro-rate based? The shares I bought in December 2021 will become long-term only after December 2022. again, the question is how Zerodha knows which shares I'm selling.
Second one: is the above tax regime applies to NRI accounts?
I have a Zerodha NRI trading account. Would you please help with a video specific to NRIs who trade/invest in India?
Best Regards
Anil Jangra
What do you think of investment advisory service providing companies? Would you suggest hiring them at any given point of time? Is there a list of trusted, good ones that you can suggest. I would really appreciate if you can make a video on such companies. Thanks.
Hi Ankur, your videos are great. I want to add something to this video. Someone might point this out already.
For the USA you want to check out the “Wash sale rule”. According to this if you immediately buy your stock you cannot claim that loss for tax savings. You have to wait for at least 30 days.
Thanks Sir for all the knowledge sharing. Specially middle class people lack clarity on what is Investing. And you have brought lot of clarity in peoples mindset.
My question is,
1. Is there any way for tax harvesting for only SIP investors because the ones you explained works for sumsum in my opinion?
2. Suppose i invest in Quant Active mutual fund, Do they keep changing companies present in this fund and invest in them based on assessing the current market situation every other day Or They stick with them forever Or They change after longterm(>5 years)
Thank you again!
Crystal clear video ✓✓✓ great!!! I need a clarification. Suppose i have investments in 5 different MFs it's all on random lumpsum basis ( no SIP) except in one in which i hv made one time lumpsum of ₹ 15 lakhs in Aug 2021. Now my question is should i or can i do the instant sale n repurchase ( that's allowed in my fund) every year starting from this financial year 2023-23 to harvest LTCG only in one MF or all Funds just by default so that date of aquisition is always remain just 1 year old.
Hii Ankur sir I have been watching your videos since very Long and they are very informative to me ♥️ . Thanks for bringing such a informative content with us . And (I want to know about Japan index nikkei that since 1991 it only goes to 12 % till now so how does that possible what is the reason behind that can you guide me ..) if it is possible than please make a video on thus it will be beneficial for us .
Shares don't rise only when we want, in the first 6 months if they rise 30% and after 12 months it's just 15% , what's the point of this harvestation
Tax harvesting will also make your average share price higher thereby reducing the overall profit, am I wrong in my thinking?
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
Can we compensate gain with loss across different demat account?
Ankur Bhai .. this the best one you have given us so far. 🙏