The equity market is going through a turbulent phase with the Nifty 500 Total Return Index, a gauge of the largest 500 stocks by market cap, registering a loss of 3.7 per cent year-to-date. Many stocks and equity mutual funds within your portfolio must be in the red. One way you can use these losses to your advantage is to go for tax-loss harvesting.
Income-tax provisions allow investors to set off their losses and thereby reduce their tax liability. “Tax-loss harvesting involves the sale of investment assets at a loss to offset the capital gains from selling other assets at a profit,” says Naveen Wadhwa, deputy general manager, Taxmann.
How it works
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.