Tax exemption will be available on the loss in the stock market.
This can be compensated while computing the tax.
Know Tax Loss Harvesting Rules for Income Taxpayers.
New Delhi. If you also invest money in the stock market, then this news is of great use to you. The Indian stock market has been under selling pressure for the last four sessions. But, this weakness of the equity market can be converted into a big opportunity by income tax paying investors. If you have suffered a loss in the stock market in any financial year, then it can be compensated while computing the tax. You can reduce your liability by adjusting your loss in tax.
According to tax and investment experts, if an income tax payer has earned substantial profit in this financial year, he can incur losses in his stock holdings. Tax loss harvesting will help the investor to reduce the risk of further losses in a weak market.
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Know what experts say
Explaining the Tax Loss Harvesting Rules for Income Taxpayers, Vineet Khandare, CEO & Founder, MyFundBazaar said, “Tax Loss Harvesting is a way through which an investor can reduce the tax on his trading gains.
Tax Loss Harvesting Rules
Tax loss harvesting method is mostly used to reduce the payment of short term capital gains tax. Suppose a trader is making a loss on some stocks. He can sell those shares at a loss and adjust them against the profits booked on other shares. By doing this your tax liability on capital gains will be reduced.
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Benefits of Tax Loss Harvesting
According to experts, the proceeds from the sale of loss-making stock/equity funds can be used to buy attractive stock/equity funds. This is necessary to maintain the original asset allocation of the portfolio. For tax loss harvesting, you have to sell your stock/fund units at a loss to reduce your tax liability on capital gains.
Tags: business news, Business news in hindi, income tax, stock market
FIRST PUBLISHED : September 28, 2022, 18:49 IST