Tax
What is Tax Loss Harvesting? — Meaning, Definition & Example
Definition
Tax loss harvesting is a strategy of selling investments at a loss to offset capital gains tax liability. In India, STCG losses can offset STCG and LTCG, while LTCG losses can only offset LTCG. Unabsorbed losses can be carried forward for 8 years.
💡 Real Example
If you have ₹2 lakh LTCG profit and ₹1.5 lakh LTCG loss, your taxable LTCG is only ₹50,000 — saving ₹18,750 in tax (after exemption).
🇮🇳 Tax Loss Harvesting in Hindi / हिंदी में
टैक्स लॉस हार्वेस्टिंग — टैक्स लॉस हार्वेस्टिंग कैपिटल गेन्स टैक्स देनदारी को ऑफसेट करने के लिए निवेश को नुकसान पर बेचने की रणनीति है।
Tax Loss Harvesting (Hinglish) — Tax loss harvesting ek strategy hai jisme investments ko loss pe sell karke capital gains tax liability offset ki jaati hai. Losses 8 saal tak carry forward ho sakti hain.
❓ Frequently Asked Questions
What is Tax Loss Harvesting in simple words?
Tax loss harvesting is a strategy of selling investments at a loss to offset capital gains tax liability. In India, STCG losses can offset STCG and LTCG, while LTCG losses can only offset LTCG. Unabsorbed losses can be carried forward for 8 years.
Can you give an example of Tax Loss Harvesting?
If you have ₹2 lakh LTCG profit and ₹1.5 lakh LTCG loss, your taxable LTCG is only ₹50,000 — saving ₹18,750 in tax (after exemption).
What is Tax Loss Harvesting meaning in Hindi?
In Hindi, Tax Loss Harvesting is called टैक्स लॉस हार्वेस्टिंग. टैक्स लॉस हार्वेस्टिंग कैपिटल गेन्स टैक्स देनदारी को ऑफसेट करने के लिए निवेश को नुकसान पर बेचने की रणनीति है।