Tax Harvester — book losses, offset gains

Smart Indian retail investors review their portfolio in February-March. If you have realized gains this financial year, booking selected losses (by selling and re-buying after a couple of days) can save significant tax. This calculator tells you exactly how much.

Your numbers

Realised STCG (this FY)₹2.00 L

Realised LTCG (this FY)₹3.00 L

Unrealised short-term LOSSES₹80,000

Unrealised long-term LOSSES₹60,000

Tax without harvesting

₹64,350

Tax after harvesting

₹39,910

You save

₹24,440

What to book before March 31

Book ₹80,000 of short-term losses

Sells offsetting your STCG (20% rate). Highest-impact harvest.

Book ₹60,000 of long-term losses

Offsets remaining LTCG above the ₹1.25L exemption (12.5% rate).

Net position after harvest

Net STCG taxable

₹1.20 L

Net LTCG taxable (after ₹1.25L exempt)

₹1.15 L

How tax harvesting works in India

STCG ↔ STCG only: Short-term losses can offset both STCG and LTCG. Long-term losses only offset LTCG.
The ₹1.25L LTCG exemption: First ₹1.25 lakh of LTCG on equity is tax-free per FY. If your LTCG is below that, harvesting LT losses isn't worth it.
How to book: Sell the loss-making position and re-buy shortly after (1-2 trading days later to avoid intraday). India doesn't have a US-style "wash sale" rule.
Carry forward: Unused losses carry forward for 8 years. File ITR-2 to lock them in.
Don't over-do it: Each round-trip costs brokerage + STT + slippage. Worth it only when tax saving exceeds transaction cost (rule of thumb: harvest losses worth ≥₹1 lakh).