I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@WilliamRobert-56 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
This was an excellent presentation with great visuals. Tax harvesting has always been a topic which I avoided because I thought I would never understand but I am wrong here. Now I'm thinking which one of my schemes to sell off 😂😂
Hello, thanks for your encouraging words. We are happy to know that you found this video helpful. Please help spread the message by sharing this video with your friends and family.
Same day purchase and sale are not possible in stocks, as it would result in business income, should keep a gap of 1 day, but in mutual funds we can buy and sell on the same day- subject to liquidity.
Suppose "I have invested ₹1.5 lakhs each in two mutual funds, Parag and Kotak, totaling ₹3 lakhs in 2024.Considering Long-Term Capital Gains (LTCG), and an annual interest earned per year as follows:2025: ₹50,000 each from Parag and Kotak2026: ₹50,000 each from Parag and Kotak2027: ₹50,000 each from Parag and Kotak2028: ₹50,000 each from Parag and KotakIf I sell only Kotak in 2025, realizing ₹50,000 in gains, how much tax would be implemented? If I sell only Parag in 2026, realizing ₹1 lakh in gains, what would be the taxable amount?"
When we are selling the MF units on FIFO method and buying it again for the purpose tax havesting… we will be buying the units at a higher Nav and hence breaking the compounding effect. I believe compounding would be hit
Very useful video. Pls add some of these tax harvesting features in the app itself. With tech, it should provide the right suggestion automatically based on our transaction data.
Thanks for providing valuable info. But from 9:14 to 9:26, explanation contradicts with what is displayed on the screen. Could you please let us know which is correct.
Good explanation, but I feel this is very difficult to execute in reality. We would also never know our true XIRR as the money would be coming out and going in every year. Also, in most of the cases, we often choose to put more money in the same fund as the year progresses. (at least what I do). So, It will become difficult to keep track of all the transactions.
@@arup76 XIRR is not affected, that's right. But we would never know our true XIRR as we would be regularly taking in and out. Any platform would show XIRR based on the new/latest invested value, and not on the initial invested value.
Hello, we fully understand your perspective. And that's why towards the end of the video, we suggested that you should assess if tax harvesting is useful to you or not. If it creates confusion or becomes too difficult to carry out, one can always give it a miss.
What's the need to track our txns? We need to decide whether tracking xirr beneficial or paying less tax is beneficial. End of the day, the corpus we have is more important than xirr
@@ETMONEY sir please be kind enough to tell me one thing if I sell the mf each year till I get 1lakh+profits won't I be need to pay the short term gain... as I'm selling my mf within 1 year
@etmoney it will be better if you can show at least some of information on the withdrawal page itself. Such as long term units and short term units and current financial year long term gain and loss as well short term. So that users can take better decisions by themselves.
Bhai ye sb to tb btao agr koi app stcg units and ltcg units separately dikhati ho, no app in current market separately shows them, for normal customer it’s hard to track manually😢
Please correct me, but this is not at all good for long term investor , who is suppose thinking to make profit of like 80-90 lakhs, because in this case no matter how much you try , you will be taxed after profit goes above 1 lakh rupees
Yes bro you are correct. Tax harvesting is not about escaping the tax it's about reducing the tax and is effective only if it is practised over a long period of time.
Thanks for sharing this tax harvesting. After knowing tax laws, I was thinking of doing this as explained in the video. However, while watching your step- by step explanation of every year booking profits and reinvesting in the same mutual fund, we will have expense ratio.of the fund which is generally 0.4- 1.5% depending on the fund. So, considering every year actually gaining lesser NAV, wouldn't it be also reducing our overall gains. Can you please show the detailed calculation video considering expense ratio in tax harvesting ?
Sir, ek question he ki agar hum tax harvesting kare to alag alag fund ka alag alag karne se har fund ka fayda hoga ya sara portfolio ka ek bar hi hogs ( ek PAN ka ) ?
Is tax harvesting a viable strategy for reducing tax liabilities in both bull and bear markets, or are there specific market conditions where it's more advantageous?
Hello, tax harvesting has nothing to do with bull or bear markets. It depends on your portfolio gains. But even if there is a net loss in your portfolio, it can be realised and carried forward so that it can be adjusted against any future gains. But then that's not tax harvesting but tax-loss harvesting.
Redeeming a mutual fund will take 1 week. Then invest. What if there is some spread in this one week? Govt should have simply provided carry forwarding of that 1 L per year tax exemption on LTCG.
Hi, nothing pleases us more than knowing that our content proved useful to our viewers. Do take out time to share it with your near and dear ones as well.
Sir If we do so, how will ET Money or any app calculate Xirr. It will be reset every time. Also if sip is running and if we keep selling like this We won't even know how much we have invested totally
Govt: Inflation. Pay up more and pay more taxes. Govt when it comes to raising limits due to inflation and crippling loss of purchase power: *pikachu face*
Good explanation. But transaction cost in a direct equity MF will increase cost? Usually on same day, purchase NAV > sell NAV resulting in reduced number of units?
If I sell the nav or stock price to reinvest again the new nav or stock price at which I wl have to buy them again will be higher(increased over 8-9 months depending on the time of buying and selling) leading to buying of lesser number of units....so is it actually useful?
Sir please answer my query In Tax harvesting If I sell before 1 year then I will invite STCG which is 15% then don’t you think it is worst then paying LTCG
I had invested in regular funds over several years. Only recently I started investing in direct funds. What approach should I follow to move from the regular to direct fund’s without losing out much on taxes? Is it wise to move to direct funds and incur tax now or let the investments remain in the regular funds?
Hi Venkat, Unfortunately, there is no one correct way. It will all depend on how much tax you will incur, how are those funds performing, etc. One way to approach is when you go about cleaning up your portfolio, you make the move.
We're all investing from the portion of our income that remains after taxes, and it's disheartening to see further deductions from that pool. The government needs to consider the perspective of taxpayers like us who are directly affected by these deductions.
Sir small cap mf main 1000 ki sip kri Hui hai. total invested value = 76k and current value 2.35L hai total profit abhi tak 1.59L hai. To agar main sirf utne units sell krta hun jisse mera ltcg
In tax harvesting example, why should we book profit more than 1 lac and pay LTCG on that as well from year 6? Does it make a difference if we claim capital gains of only upto 1 lac from year 6 to 10, and claim the total capital gains only in year 10, and pay tax on that? I believe we should pay the same tax in both the cases, right?
Hello, thanks for sharing your perspective. The idea of the illustration is to demonstrate how tax harvesting works. You can always make slight changes to it based on your requirements.
No apps shows this, even the amc’s statement don’t shows the exit load charged on how many units. I have contacted the AMC directly they says we don’t have any such statement🙂
Yes. Apps like Kuvera offer premium services (around 500 INR, in the case of Kuvera, if I remember correctly) to activate a feature that shows you calculations for the purposes of optimising tax gain harvesting. But this only makes it easier to calculate, you still need to make the choices of what to sell and actually follow through with the sale and repurchase.
Most pathetic approach to lose money. Here's a fun fact: If you try to do tax loss harvesting every year that means your money will be out of the market for few days. Since we cannot know whether those will be the golden days for the market. Even in the last 40 years of SENSEX, if someone have just lose 25 golden days, then their average returns reduces from 13.5% to 10%
I have one question: If you reedem your fund every year doesn't it attract STCG for that FY?? One more question is how this system works for some fund where I am doing SIP?
Hello, for overseas stocks, tax harvesting won't be applicable as overseas gains aren't subject to the exemption limit of Rs 1 lakh. However, one can use tax-loss harvesting to reduce one's taxable gains.
Hello, tax-gain harvesting isn't possible for international equity funds as the gains from them aren't exempt up to Rs 1 lakh. It's only domestic equity gains that enjoy this tax treatment. However, you can use tax-loss harvesting for international equity.
Hello, if a product qualifies for indexation benefits and you sell it after the required duration, that can help you reduce your tax outgo. But currently, no domestic equity product enjoys indexation. Even debt funds have lost this advantage.
Hello, capital-gain bonds or 54EC bonds can help you save long-term capital-gain tax. However, you must do your own due diligence to assess if these bonds are suited to you or not.
@@ETMONEY That means if my icnome is only from stock market specifically in mutual funds even though the profit is more than 10L still I will pay 10% tax right ?
Sir If I make 1L in profits in LTCG in mutual fund, and I make say 15LPA (new regime) then I won't pay LCCG tax on MF but will that make my net income 16L, instead of 15L? and will that then increase my income tax?
Hello, long-term realised gains from equity funds are exempt up to Rs 1 lakh. So, while these gains will increase your annual income to Rs 16 lakh, there won't be any tax incidence due to them.
With ET Money genius portfolio's monthly rebalancing feature, investor will be paying huge amounts of STCG tax. None of the investment is allowed sufficient time to give proper returns. While rebalancing, et money should take into account the losses it will cause.
Hi, Genius recommends buying/selling (in case of stocks) and switching (in case of Mutual Funds) in a way that minimum selling of your investments is happening to minimize tax implications. However, Genius is built to prioritize maintaining asset allocation of your portfolio nearest or equal to that day's ideal asset allocation of the strategy. So, if that means incurring the cost of tax, it chooses that and recommends taking it. As you may be aware STCG tax for Equities is 15% and LTCG tax on the same is 10% (subject to the 1L free limit in a FY) to ensure, asset allocation is maintained, at times there may be a recommendation to sell something that would result in short capital loss too. Now ST capital losses can be carried forward and are allowed to adjust against one's short as well as one's long-term capital gains. So, if one were to look at the taxes beyond the 1L capital gains tax-free limit then the difference between 10% and 15% tax on profits isn't really a consideration as one is paying taxes from profits + due to this set-off allowed between short-term capital losses & long-term capital gains
@ETmoney..I think tax loss harvesting is just a gimmick..see like when u setoff ur loss with profit in another fund..u might evade tax that year..but when u buy the same fund again, ur average cost price comes down so in future when u book it for profit, u have to pay the tax on a higher profit.. so the tax paid is same in both the cases. correct me if I happen to be wrong.. and even in tax gain harvesting.. it is useful for small capital.. like shown in the example, as the Capital grows it is of less help.
Hello, we understand that Hindi is your preferred language. We also have a Hindi channel, on which you can find the translated versions of the videos on this channel, along with lots of other insightful content. Please visit www.youtube.com/@etmoneyhindi.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@WilliamRobert-56 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@imohimoh3441 My advisor is VICTORIA CARMEN SANTAELLA;
You can look her up online
@@WilliamRobert-56 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Things to keep in mind is very important part. No one talks about it. Thanks Rajat for sharing this.
I am glad you found this useful. Do share it with your friends and family and help us reach more people.
This was an excellent presentation with great visuals. Tax harvesting has always been a topic which I avoided because I thought I would never understand but I am wrong here. Now I'm thinking which one of my schemes to sell off 😂😂
Hello, thanks for your encouraging words. We are happy to know that you found this video helpful. Please help spread the message by sharing this video with your friends and family.
Thank you, Rajat, I am grateful for the thoughtful and comprehensive content you've provided.
Its a great concept to make videos on. But not practical and necessary if you are a long term investor and have multiple funds with multiple SIPs.
True
Same day purchase and sale are not possible in stocks, as it would result in business income, should keep a gap of 1 day, but in mutual funds we can buy and sell on the same day- subject to liquidity.
Hello, thanks for sharing this worthy perspective. We are sure it will benefit many other viewers.
One mistake. Ltcg can be booked after 3 year
So the first two year one cant book profit without paying stcg
Really useful advise in the end, choose between wealth creation and the hassle of tax harvesting. Thanks for a honest explanation.
Selling and buying again will make it short term money as well
Suppose "I have invested ₹1.5 lakhs each in two mutual funds, Parag and Kotak, totaling ₹3 lakhs in 2024.Considering Long-Term Capital Gains (LTCG), and an annual interest earned per year as follows:2025: ₹50,000 each from Parag and Kotak2026: ₹50,000 each from Parag and Kotak2027: ₹50,000 each from Parag and Kotak2028: ₹50,000 each from Parag and KotakIf I sell only Kotak in 2025, realizing ₹50,000 in gains, how much tax would be implemented? If I sell only Parag in 2026, realizing ₹1 lakh in gains, what would be the taxable amount?"
Really grateful to etmoney for such knowledge boosting Videos for Non financial people like us.
Hello, thanks for your encouraging words. Please help spread the message by sharing this video with your friends and family.
When we are selling the MF units on FIFO method and buying it again for the purpose tax havesting… we will be buying the units at a higher Nav and hence breaking the compounding effect. I believe compounding would be hit
Very useful video. Pls add some of these tax harvesting features in the app itself. With tech, it should provide the right suggestion automatically based on our transaction data.
Thanks for providing valuable info. But from 9:14 to 9:26, explanation contradicts with what is displayed on the screen. Could you please let us know which is correct.
Good explanation, but I feel this is very difficult to execute in reality.
We would also never know our true XIRR as the money would be coming out and going in every year. Also, in most of the cases, we often choose to put more money in the same fund as the year progresses. (at least what I do).
So, It will become difficult to keep track of all the transactions.
As I understand, XIRR is not affected since this covers debit/credits in the calculation. ETmoney can clarify.
@@arup76 XIRR is not affected, that's right. But we would never know our true XIRR as we would be regularly taking in and out. Any platform would show XIRR based on the new/latest invested value, and not on the initial invested value.
Hello, we fully understand your perspective. And that's why towards the end of the video, we suggested that you should assess if tax harvesting is useful to you or not. If it creates confusion or becomes too difficult to carry out, one can always give it a miss.
What's the need to track our txns? We need to decide whether tracking xirr beneficial or paying less tax is beneficial. End of the day, the corpus we have is more important than xirr
Great sir. You have explained about tax harvesting in an excellent manner. Thank you sir
Hello, we are extremely happy to know that you found this video useful. Please share it with your friends and family as well and help spread the word.
@@ETMONEY sir please be kind enough to tell me one thing if I sell the mf each year till I get 1lakh+profits won't I be need to pay the short term gain... as I'm selling my mf within 1 year
@ETMoney: does your ETMoney app offers this feature? Tax harvesting and tax loss harvesting?
Not at all
@etmoney it will be better if you can show at least some of information on the withdrawal page itself. Such as long term units and short term units and current financial year long term gain and loss as well short term. So that users can take better decisions by themselves.
Hello, these are currently not available on the ET Money app but our product team would sure like to consider including them.
Hello@@SukoonWaliYaadein Thanks for your suggestion. Will pass it on to our product team.
Kuvera has the feature
Last part of video was great
Nicely explained. Would like to know how to do it with the new tax regime coming into effect from 2024
Please add the cost of transaction and this gap for tax hain harvesting will come down
Bhai ye sb to tb btao agr koi app stcg units and ltcg units separately dikhati ho, no app in current market separately shows them, for normal customer it’s hard to track manually😢
Please correct me, but this is not at all good for long term investor , who is suppose thinking to make profit of like 80-90 lakhs, because in this case no matter how much you try , you will be taxed after profit goes above 1 lakh rupees
Yes bro you are correct. Tax harvesting is not about escaping the tax it's about reducing the tax and is effective only if it is practised over a long period of time.
Thanks for sharing this tax harvesting. After knowing tax laws, I was thinking of doing this as explained in the video. However, while watching your step- by step explanation of every year booking profits and reinvesting in the same mutual fund, we will have expense ratio.of the fund which is generally 0.4- 1.5% depending on the fund. So, considering every year actually gaining lesser NAV, wouldn't it be also reducing our overall gains. Can you please show the detailed calculation video considering expense ratio in tax harvesting ?
Wat about stt you will pay every time you buy again
Quite educational, thank you!
Hi, glad to know that you found this video helpful. Please don’t forget to share it with your friends and family.
Sir, ek question he ki agar hum tax harvesting kare to alag alag fund ka alag alag karne se har fund ka fayda hoga ya sara portfolio ka ek bar hi hogs ( ek PAN ka ) ?
Is tax harvesting a viable strategy for reducing tax liabilities in both bull and bear markets, or are there specific market conditions where it's more advantageous?
Hello, tax harvesting has nothing to do with bull or bear markets. It depends on your portfolio gains. But even if there is a net loss in your portfolio, it can be realised and carried forward so that it can be adjusted against any future gains. But then that's not tax harvesting but tax-loss harvesting.
Useful topic. Thank you.
Can I adjust my LTCG against my income and get it refunded if I fall within zero tax slab?
Redeeming a mutual fund will take 1 week. Then invest. What if there is some spread in this one week? Govt should have simply provided carry forwarding of that 1 L per year tax exemption on LTCG.
Strategy only works for poor investors not for the people who trade around 50Lakhs in a year.
Excellent presentation of a great concept. Very useful
Hi, nothing pleases us more than knowing that our content proved useful to our viewers. Do take out time to share it with your near and dear ones as well.
Well explained 👏
How would tax gain harvesting work for SIPs done in ELSS mutual funds?
Thank you Rajat for sharing this. It's helpful
I am glad we could help you. Do help us reach more people by sharing this with your friends and family.
Sir
If we do so, how will ET Money or any app calculate Xirr.
It will be reset every time.
Also if sip is running and if we keep selling like this
We won't even know how much we have invested totally
Amazing explaination
Govt: Inflation. Pay up more and pay more taxes.
Govt when it comes to raising limits due to inflation and crippling loss of purchase power: *pikachu face*
Good explanation. But transaction cost in a direct equity MF will increase cost? Usually on same day, purchase NAV > sell NAV resulting in reduced number of units?
If I sell the nav or stock price to reinvest again the new nav or stock price at which I wl have to buy them again will be higher(increased over 8-9 months depending on the time of buying and selling) leading to buying of lesser number of units....so is it actually useful?
But reduced number of units have same value then whats the problem here.
but its just delaying paying of taxes in the long run.
Very well explained. Thank you
Hi, glad to know that you found this video helpful. Please don’t forget to share it with your friends and family.
How can one be sure to get 12% linear returns in equity y-o-y as used by you in this video. Returns are lumpy.
Hello, you are right. But we have taken that assumption just for illustration purposes. The real-life scenario would be very different.
What about exit load?
Hi Sir, am having few SIP running through ET money for the last 19 months, can I do tax harvesting ? if so how
Sir please answer my query
In Tax harvesting
If I sell before 1 year then I will invite STCG which is 15% then don’t you think it is worst then paying LTCG
India shelter will be my 1s choice
Given the situation, can we still sell Equity on 26/March and re-invest on 28/March..
I had invested in regular funds over several years. Only recently I started investing in direct funds. What approach should I follow to move from the regular to direct fund’s without losing out much on taxes? Is it wise to move to direct funds and incur tax now or let the investments remain in the regular funds?
Hi Venkat,
Unfortunately, there is no one correct way. It will all depend on how much tax you will incur, how are those funds performing, etc. One way to approach is when you go about cleaning up your portfolio, you make the move.
Superb video. Thanks 👍🏻
Hello, thanks for your encouraging words. Please help spread the message by sharing this video with your friends and family.
How this will work with Sip???
Dont say no matter where invested made profit- though true for majority but many have given big negative returns
We're all investing from the portion of our income that remains after taxes, and it's disheartening to see further deductions from that pool.
The government needs to consider the perspective of taxpayers like us who are directly affected by these deductions.
Sir small cap mf main 1000 ki sip kri Hui hai. total invested value = 76k and current value 2.35L hai total profit abhi tak 1.59L hai. To agar main sirf utne units sell krta hun jisse mera ltcg
In tax harvesting example, why should we book profit more than 1 lac and pay LTCG on that as well from year 6? Does it make a difference if we claim capital gains of only upto 1 lac from year 6 to 10, and claim the total capital gains only in year 10, and pay tax on that? I believe we should pay the same tax in both the cases, right?
Hello, thanks for sharing your perspective. The idea of the illustration is to demonstrate how tax harvesting works. You can always make slight changes to it based on your requirements.
How can we know that we have been charged for exit load by mutual funds?
No apps shows this, even the amc’s statement don’t shows the exit load charged on how many units.
I have contacted the AMC directly they says we don’t have any such statement🙂
@@RahulVerma-tv6gqKuvera shows it when you redeem.
How to sell mutual fund so that gain is less than 1 lacs? Calculation?
Yes. Apps like Kuvera offer premium services (around 500 INR, in the case of Kuvera, if I remember correctly) to activate a feature that shows you calculations for the purposes of optimising tax gain harvesting. But this only makes it easier to calculate, you still need to make the choices of what to sell and actually follow through with the sale and repurchase.
Most pathetic approach to lose money.
Here's a fun fact: If you try to do tax loss harvesting every year that means your money will be out of the market for few days. Since we cannot know whether those will be the golden days for the market.
Even in the last 40 years of SENSEX, if someone have just lose 25 golden days, then their average returns reduces from 13.5% to 10%
We can buy in 1-2 days itself after selling where in there will not be much difference in price of stocks
If you feel like that invest first and sell which is more than 1 year
Can i sell and buy on the same day in different accounts
I did not understand the concept of tax harvesting in SIP. can you break it down with an example as done with Lumpsum?
Hello, thanks for letting us know your concern. Will share it with our content team.
It's an inbuilt option in kuvera. Check it out
For NRO investors is this exemption of 1 lakh applicable?
Very good 👍
Thank you 👍
I have one question: If you reedem your fund every year doesn't it attract STCG for that FY??
One more question is how this system works for some fund where I am doing SIP?
I'm also thinking the same
how to monitor all this
Sir if we sell within 1 year, the Gain is taxable under STCG, why are you calculating for LTCG?
Have the same query, I also want to know the exact date we must invest in MF and at what date we must exit from MF.
Perfect teaching 👍
Hi, glad to know that you found this video helpful. Please don’t forget to share it with your friends and family.
Do you have to buy the same mf scheme and within how much time?
Hi,
I have invested in ELSS fund. Can I switched to Growth fund without hampering the compounding? The three years locking period is completed.
Yes definitely, once your locking period is over you can invest in any direct growth equity scheme. Compounding will not be affected.
Very useful information, is it applicable for US funds or stocks as the ltcg is 3 years
Hello, for overseas stocks, tax harvesting won't be applicable as overseas gains aren't subject to the exemption limit of Rs 1 lakh. However, one can use tax-loss harvesting to reduce one's taxable gains.
Can you please explain the tax gain harvesting on international equity mutual fund?
Hello, tax-gain harvesting isn't possible for international equity funds as the gains from them aren't exempt up to Rs 1 lakh. It's only domestic equity gains that enjoy this tax treatment. However, you can use tax-loss harvesting for international equity.
@@ETMONEY Thank you for the reply
Is there a plan to release Hindi version of this video on ET Money Hindi channel ? If yes, is there any timeline ?
Hello, the Hindi version of this video has been released. Please check: ua-cam.com/video/tnXLrgZDAv8/v-deo.html
On top of these I guess we can use benifit of indexation????
Hello, if a product qualifies for indexation benefits and you sell it after the required duration, that can help you reduce your tax outgo. But currently, no domestic equity product enjoys indexation. Even debt funds have lost this advantage.
@ETMoney, Do we have to pay tax if stocks are not sold at all.
Do you do the tax filing for the income from stock markets.
tax will only be deducted at the of selling the stock.
@@NageshSinghTomer Thanks for the reply. Ok, So for income tax it has to be paid separately during filing itr , is that correct ?
What abt indexation benefits in LTCG?
Hello, there are no indexation benefits on long-term capital gains arising from equity.
Rs 100000/- exemption limit is including Share andMF? Or for Share 1lac and MF1lac .
Hello, Rs 1 lakh is the overall exemption for equity, be it stocks or equity funds.
If we invest the gains into real estate or some other investment is there a need to pay taxes?
Hello, capital-gain bonds or 54EC bonds can help you save long-term capital-gain tax. However, you must do your own due diligence to assess if these bonds are suited to you or not.
Can the LTCG on MFs be invested in 54 EC bonds to avoid tax?
Hello, yes, you can do so. However, you must assess the suitability of these bonds for yourself.
Is LTCG 10% tax is fixed ? Irrespective of my regular tax slab ?
Yes
@@ETMONEY That means if my icnome is only from stock market specifically in mutual funds even though the profit is more than 10L still I will pay 10% tax right ?
Will it work if i sell and then purchase back immediately ?
Anyone please ?
Who will deduct STCG or LTCG Tax?
Hello, it's not deducted automatically. You will need to pay it at the time of filing your ITR or you can also pay advance tax.
Sir If I make 1L in profits in LTCG in mutual fund, and I make say 15LPA (new regime) then I won't pay LCCG tax on MF but will that make my net income 16L, instead of 15L? and will that then increase my income tax?
LTCG has no connection with salaried/income tax. It is independent.
Hello, long-term realised gains from equity funds are exempt up to Rs 1 lakh. So, while these gains will increase your annual income to Rs 16 lakh, there won't be any tax incidence due to them.
Legally ofcourse 😅
With ET Money genius portfolio's monthly rebalancing feature, investor will be paying huge amounts of STCG tax. None of the investment is allowed sufficient time to give proper returns. While rebalancing, et money should take into account the losses it will cause.
Hi,
Genius recommends buying/selling (in case of stocks) and switching (in case of Mutual Funds) in a way that minimum selling of your investments is happening to minimize tax implications.
However, Genius is built to prioritize maintaining asset allocation of your portfolio nearest or equal to that day's ideal asset allocation of the strategy. So, if that means incurring the cost of tax, it chooses that and recommends taking it.
As you may be aware STCG tax for Equities is 15% and LTCG tax on the same is 10% (subject to the 1L free limit in a FY) to ensure, asset allocation is maintained, at times there may be a recommendation to sell something that would result in short capital loss too.
Now ST capital losses can be carried forward and are allowed to adjust against one's short as well as one's long-term capital gains.
So, if one were to look at the taxes beyond the 1L capital gains tax-free limit then the difference between 10% and 15% tax on profits isn't really a consideration as one is paying taxes from profits + due to this set-off allowed between short-term capital losses & long-term capital gains
New govt will remove this loop hole
@ETMoney can the ET money app have feature of goal so that funds can be marked for a particular goal.
@ETmoney..I think tax loss harvesting is just a gimmick..see like when u setoff ur loss with profit in another fund..u might evade tax that year..but when u buy the same fund again, ur average cost price comes down so in future when u book it for profit, u have to pay the tax on a higher profit.. so the tax paid is same in both the cases. correct me if I happen to be wrong..
and even in tax gain harvesting.. it is useful for small capital.. like shown in the example, as the Capital grows it is of less help.
It’s a theoretical concept! No way near to practicality!!
Where is the hindi video for the same?
Hello, we understand that Hindi is your preferred language. We also have a Hindi channel, on which you can find the translated versions of the videos on this channel, along with lots of other insightful content. Please visit www.youtube.com/@etmoneyhindi.