Basics of Stock Market#3: TAX-LOSS HARVESTING: SAVE TAX ON STOCK MARKET INCOME

Basics of Stock Market#3: TAX-LOSS HARVESTING: SAVE TAX ON STOCK MARKET INCOME #taxharvesting #viral
Last Video:
Basics of Stock Market # 2:Financial Ratios of Stock Market #stockmarket #viral #fundamentalanalysis
• Basics of Stock Market...
Capital gains up to Rs 1 lakh annually are exempted from capital gains tax. The long-term capital gain tax rate on equity investments/shares will continue to be charged at 10% on the gains. On the other hand, short-term capital gains tax on shares or equity investments will be charged at 15%.
Tax harvesting, also known as tax-loss harvesting, is a strategy used by investors to minimize their tax liability by selling securities that have experienced a loss in value. This loss can then be used to offset capital gains taxes on profitable investments or other taxable income. Tax harvesting is typically done near the end of the tax year to take advantage of potential tax benefits.
Here's how tax harvesting works in the Indian context with an example:
Let's say you have two investments in the Indian stock market:
1. Stock A: You purchased 100 shares of Stock A at ₹200 per share, totaling ₹20,000.
2. Stock B: You purchased 100 shares of Stock B at ₹300 per share, totaling ₹30,000.
Now, let's assume that by the end of the tax year, Stock A has declined in value while Stock B has appreciated:
1. Stock A: The current market price of Stock A has dropped to ₹150 per share.
2. Stock B: The current market price of Stock B has increased to ₹350 per share.
If you were to sell both stocks at their current market prices, you would have:
1. Stock A: Selling 100 shares of Stock A at ₹150 per share would result in ₹15,000 (100 shares * ₹150).
2. Stock B: Selling 100 shares of Stock B at ₹350 per share would result in ₹35,000 (100 shares * ₹350).
However, if you employ tax harvesting, you could sell Stock A at a loss to offset taxes on the gains from selling Stock B.
So, you decide to sell Stock A at ₹150 per share:
• You sell 100 shares of Stock A at ₹150 per share, resulting in ₹15,000.
• You incur a loss of ₹5,000 on Stock A (₹20,000 - ₹15,000).
Now, you can use this loss to offset your capital gains from selling Stock B:
• Your capital gain from selling Stock B is ₹5,000 (₹35,000 - ₹30,000).
• By applying the loss from Stock A, your net capital gain becomes zero.
As a result, you won't have to pay any capital gains tax on the sale of Stock B because the loss from selling Stock A offsets the gain from selling Stock B.
This is a simplified example, and tax rules can vary based on individual circumstances and changes in tax laws. It's essential to consult with a tax advisor or financial expert before implementing any tax harvesting strategy.
This Video is for educational purpose only. Disclaimer to be followed in the video. I am not SEBI registered advisor.
Before taking any investment decision, please consult your financial advisor or do your own research. This channel is not be responsible for any financial gain as well as financial losses.
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Basics of Stock Market#3: TAX-LOSS HARVESTING: SAVE TAX ON STOCK MARKET INCOME #taxharvesting #viral
Last Video:
Basics of Stock Market # 2:Financial Ratios of Stock Market #stockmarket #viral #fundamentalanalysis
www.youtube.com/watch?v=TbGvK...

[@kotlatulasireddy3570]

Thank you for this video

[@MoneyMakesMoney86]

So nice of you

[@chinnarocks8580]

Good information

[@MoneyMakesMoney86]

Thanks

[@bhagyammasalkuti9138]

Good video on Tax Loss harvesting

[@MoneyMakesMoney86]

Thanks for watching!

[@user-vc8gv5nv3t]

Good information 🎉

[@MoneyMakesMoney86]

Glad you think so!

[@srikanthreddy5406]

Thank you for the video

[@MoneyMakesMoney86]

Thanks for watching!

[@Trainmerijaan86]

Waiting for this video. Could have published at least 15 days back