Important link: link.labourlawadvisor.in/shorts Hax to Save Tax: www.taxplanningforsalariedemployees.com Edit: Jagruk Janta have commented that buying and selling on same day counts as Intraday and app does not consider it as CG. The solution is to do it in mutual funds as it very easy to get the same NAV for buy and sell (if you place both orders on same day, during early market ours).
This harvesting way is double beneficial on ELSS funds, you not only take advantage of LTCG tax rebate up to 1lac but also save tax. Only thing is investments should complete 3 years.
Sir I have a question If I sell a stock and buy it on the same day wouldn’t be considered as intraday transaction ? N if it is considered as Intraday transaction the in that case I wouldn’t be able to book long term capital gain or loss.
for example I hold share for 100 I sold for 200 & again buy at 200 and sold at 300 ,, if any misshapen happen with company then there is zero margin of safety ,,,
@@bhatiavarun8 he said that you can sell only those share you are holding from more than 1 year... simply you can only harvest tax in the next year. (you can't apply this when you don't have any share in holding more than a year)
First time dekhe aapke video.jo Mann mei questions aate the,but answer kahin se nahi milte the,sab answers mil rahe hai.will see your videos regularly.Thanks a lot
First of all you will need to sell 7-10L worth of shares to book 1L profit considering 10-15% return. Second you need another 7-10 L to buy back the same stocks on the same day as broker won't release your funds immediately to buy back the sold stocks. +Extra brokerage, DP charges etc. But yes you can save some tax but it won't matter in the long run.
While taking advantage of harvesting in mutual fund, we will have to pay 0.05% stamp duty every time. that must be taken into account. and incase of stocks, brokerage gst stt and other such charges must be taken into consideration.
If we buy same in same day, it will be intraday that mean no quantity will be deducted and no quantity willl be added. You have to buyback that share after 1 day.
You have to pay selling as well as buying brokerage 10 times each + buying price will be higher than selling price each times +STT each times . Totally impracticable !!!
Try discount brokers with 0 delivery charges, buying and selling price can be maintained by limit orders, yes will have to pay STT both time but it will be less than 1lakh per annum🤷 in short this video is legit
@@bhavenmadani3157 short term gain taxes are 15% when you sell it before 12m. And long term taxes are 10% Govt institutions and policy makers are smart enough to cover the loopholes.
Very interesting concept. Thanks. 1. In case of equity what about brokarage+stt overhead? 2. Sometimes buy and sell prices differs in same instance. In those cases what to do?
Wow... Never thought of this. I just heard Tax Harvesting but never knew why it is important and how it can be implemented. It is surely a concept and on top of that surely the best video
I'd like to add one more point in the case of Mutual Funds: Some of the Mutual Funds don't accept lumpsum deposits, so if you withdraw the units for tax harvesting, you won't be able to buy the units back because lumpsum deposits aren't allowed. Just wanted to mention as to keep a watch on such Mutual Funds before withdrawing and regretting afterwards.
One more pro tip: If you have invested in regular mutual funds, then place the sell order for regular units and buy order for direct plan units on the same day. You will do both tax harvesting as well as switch to direct plan which will save commissions in future.
Thank you thank you thank you.................. Sir bahut dino se inke answer khoj raha tha ...salute you sir love you sir jis tarah se aapne bataya lajwab tha behtareen tha ...
07:25 To realize loss or profit in long term stock holdings the stock has to move out of the demat a/c so as per your saying that, buy and sell on the same day will not result in tax loss harvesting it will be considered as an intraday trade.
We should use two demat account.... In one we cal sell and other we can buy on same day at same price.. Isn't it..?? I know we have to pay sebi charges, duty and all that...
Buying and selling on the same day gets considered as intraday transaction and capital gains remain as it is. There has to be a gap of 1 day between buying and selling to harvest gain or loss
Plz make an in-depth video explaining tax harvesting for Mutual funds, SIPs and NPS tier 2 holdings. And kindly explain the detailed process, with demonstration. The concept of intraday trading is quite confusing. Also plz mention the charges involved in brokerage etc that one has to keep in mind while doing tax harvesting.
Sir isme huim jb share sell Krna hoga 100 pr or hum us we phale 100 ka basket order laga ke rkhenge limit order pr jis se hamra stock usi preice me buy ho jayein uske lie liquidation fund hona jruri haai good sir bahut aacha smjhaya apne cool 🕵️🤗
In case of SIP in mutual funds, even if we buy and sell for same amount on same day, still the actual average cost of units sold would have been less but cost of buying would be more thereby increasing overall average cost of the unit. Kindly clear the doubt. If possible, make a separate video for tax harvesting in sip mutual funds with a realistic example.
ELSS comes very handy in harvesting tax , whatever u redeem that comes automatically under LTCG , I invest around 1.2 Lakh per year and wo 3 saal badhkr atleast 60 70 hazaar ka profit de deta h.
You have to pay sell and again buy brokerage total 20 times . Overall buying price will be more than selling price everytime + STT. TOTALLY UNPRACTIBLE !!!
@@mr.kapasi1513 Most brokers don't charge Rs: 20 brokerages if you take delivery of equity shares. But the government/sebi charge Taxes when you sell or buy shares.
Nice content. But I think in the year in which you finally exit you need to ensure that 12 months have elapsed otherwise Short Term Capital Gains will be applicable @15% without indexation benefit and without 1 lakh exemption. And if the price has moved very good in the final year of exit, and STCG is applicable much of the efforts of earlier years would go in vain. It's all about saving max 10,000 p.a (10% of 100,000) for each period of holding. In hindsight this looks good, but in real time much efforts involved for a small percentage of saving.
For tax harvesting If we buy the shares first and then sell the same number of shares on same day then it will be counted as intraday and the shares in demat account will not be debited. So in any way we need to do these buy and sell on different trading days
@@harishwarreddy9114 Not if you sell stocks that are in your holdings. For LTCG you have to sell the stocks that you have in your demat account, if you sell those and then buy delivery of same amount it wouldn't be considered intraday.
bhai g aapne bahut sahi bataya but shere sell aur buy krne par bhi charge lgta hai uska bhi khyal rakhna chahye aapko, shere buy krne ke liye advance paisa bhi hona chahye, tension rahega vo alag, is tarah se app mushkil se 30000-40000rs hi bacha payenge
I got it, its not so simple. I think it will effect Dividend right? How about brokerage fee every time you Buy/Sell ? Plus what about Spread you face every time you buy/sell?
Thanks for this nice and most useful video. It is practicable. But, firstly, it is very cumbersome. Secondly, the tax saved will have to be invested again and in this way one will have a big corpus after say 10 years and one time will come when he will not be able to save tax.
This cannot be replicated in equity on the same day, cos the transaction will be considered will be as intra day and the shares won't be debited from your demat account. Only exception would be trade to trade shares where you can purely trade deliver only. To replicate your theory, , u can buy shares the next session.
If we BUY and SELL on the same date; both the transitions will be considered as an intraday trade. Please clarify this. I already faced this issue in GROWW APP. To avoid this issue, I calculate the 365 days old quantity from holding and BUY the same quantity on Day 1 and SOLD it on the next Day 2 or whenever I got the same or more price of my holding. This is how I do my "Tax Harvesting".
He is not telling to sell on the same day. He told after the completion of an financial year you sell it. Buying on day 1 and selling on day 2 will cost you with stcg
"If we BUY and SELL on the same date; both the transitions will be considered as an intraday trade. Please clarify this" YES , it will be considered under speculative profit/Loss and it need to be reported as a business income not Capital Gain/Loss. In platforms like Zerodha you can select Scrip either from Holdings section or Position . If you sell from Position section , it becomes "Intraday" but if you sell from Holding then it's Capital gain/Loss. tbh GROWW is good for MF only but not for Stocks
Wrong. I explained the FIFO concept in the video. Your new buy order will bring you a new share (0 days old) But your new sell order (place the order from holdings, not positions), will sell the share that you bought earliest. (Minimum 365 days old, or more). No tension of intraday. 2 shares are different.
I have a Doubt ... does Intraday loss be used to offset STCG and LTCG ? Btw I've bought the journal as a token of appreciation for teaching this concept .
Intra day loss is shown under business head and if you have income under head capital gains then you can set off business head loss from capital gain head income!
Thanks Sir for all the knowledge sharing. Specially middle class people lack clarity on what is Investing. And you have brought lot of clarity in peoples mindset. My question is, 1. Is there any way for tax harvesting for only SIP investors because the ones you explained works for sumsum in my opinion? 2. Suppose i invest in Quant Active mutual fund, Do they keep changing companies present in this fund and invest in them based on assessing the current market situation every other day Or They stick with them forever Or They change after longterm(>5 years) Thank you again!
Hi Rishabh, amazing content as usual. I have one question related to executing Tax Harvesting. If I keep on harvesting the LTCG of my portfolio, it becomes extremely challenging to quantify my portfolio returns. For e.g. the case of the ABC share you gave if you don't harvest LTCG every year, you have a clear understanding of how ABC and for that matter, your entire portfolio is performing, given you have the actual CAGR/XIRR. But if you harvest LTCG every year, let's say after 4-5 years, it becomes challenging to observe the performance of the stock. I mean here it is just ABC so we can directly check the prices/growth on any platform. But what if we have a larger portfolio with let's say 40 stocks and 5 mutual funds. In that case, what can we do to have a clear understanding of the performance of our portfolio? Thanks in advance :)
Short term capital gain tax is 15% if sold before 12m, policy makers are IRS officers and financial experts they are not ignorant. Lack of information is always dangerous!
@@technique9915 fifo toh tab lagega, jab trade cnc ho. But same day buy/sell ya opposite karne se dono trades intraday count honge, na ki delivery. Hence, no tax harvesting
@@visheshagrawal5122 Eg- You buy 10 shares 1 year ago, now you want to harvest tax. Buy 10 shares and sell 10 at the same price today. You still have 10 shares now and you harvested tax. (Due to fifo 1year ago shares will be squared off with sell and not the today bought ). So no intraday.
For MF BUY - 100 UNITS - Rs. 100 NAV - 100K CAPITAL SELL - 100 UNITS - Rs. 200 NAV - 100K CAPITAL & 100K GAINS BUY - 100 UNITS - RS. 200 NAV - 200K CAPITAL simple transition from 100k gain + 100k capital to 200k capital. Thanks Rishabhji for covering edge cases too.
There is an exemption of 1L. You will only have to pay STCG if you realize it meaning only if you sell within 1 year of purchase. Example: On March 1st this year, you have 3L of which 2L is profit which you bought on last day of Feb, last year. So your effective LTCG is at 2L. Of which you are exempt upto 1L. In order to get this exemption realize you're gain and buy back before 1st of April. So you're effective final taxable gain is only 1L instead of 2L. So you save 10000. Since you buyback more or less at the same amount you will have approx. 3L in your portfolio. So the other 1L is saved under exemption and not really a STCG since its not realized. Repeat this after one more year. Also just realize gains which are older than 1 year upto 1L only, not all of your portfolio to avoid paying for brokerage, STT etc. One advise is to do this well before March. Many retailers might do this and lead to fall of a stock and you might end up in loss.
If we sell our stocks which are in loss and buy them at the same price,just to set off ltcg,shall not we be about to pay more stcg tax or ltcg tax on this new bought share? Because the gain would be more from the lower value bought rather than from the earlier value. Kindly reply rishab sir.
umm exactly same ques came to me.. aise to wo STCG me ajaega.. but here is a catch.. yaha par he is saying unn stock ko becho jo 1 saal se pehle khreede the... so, neither STCG applicable here. and LTCG also not if profit is under 1 lac... i hope mai smjh gaya ya nahii pata nahi 😂😂
@@amansrivastava3524 My question is,if I book loss on a share of stock A just to setoff tax on profit earned on share of stock B,it means I am repurchasing the share of Stock A at a price lower than the price that i bought earlier which implies I have to pay more stcg Or ltcg on gains of share of stock A as I purchased it now at a lower price.
At 15:46, you mentioned that it is advisable to do tax harvesting before March itself, but I guess then short term capital gain can get applicable at 15% flat. In that case tax isn't saved.
I tried tax harvesting this year , you have to re-buy it the next day only at the earliest . In my first attempt I sold and then bought the same day and it didnt considered it as CG sold. It treated it as future option and the next day those shares were still showing as 365+ days old In my second attempt I sold and bought the next day and everything was correct as discribed in the video Can you comment if this happened with anyone else or I did something wrong?
If u do NSE to BSE that is buy the stock in NSE n sell ur old delivery in BSE u cam achieve it the same day. So cost will definitely go up as delivery brokerage will be charged from you.
May be because the shares didn't went out of your demat account. May be it requires for the shares to move out of your demat account and then you buy again, it will show fresh buy. May be. I'm not sure.
It takes T+1 day to deposit in your account. Before sept 2021 it use to take T+2 days. So your share will be considered as sale only after closing the market. Unless that time it will be considered as short sale. ( It you have given POA to your broker )
Thank u sir... I will use this method to withdraw the money from my ELSS... in such a way that total profit in one financial year does not exceed the 1 lakh limit....
Well you just have to sell stocks only if it is there for more than a year otherwise don't sell it as it comes under STCG. And in between harvesting comes when you have multiple stocks who's maturity age of 1 year is different from each other... So in between so can book profit for the bundle of stocks
There is an exemption of 1L. You will only have to pay STCG if you realize it meaning only if you sell within 1 year of purchase. Example: On March 1st this year, you have 3L of which 2L is profit which you bought on last day of Feb, last year. So your effective LTCG is at 2L. Of which you are exempt upto 1L. In order to get this exemption realize you're gain and buy back before 1st of April. So you're effective final taxable gain is only 1L instead of 2L. So you save 10000. Since you buyback more or less at the same amount you will have approx. 3L in your portfolio. So the other 1L is saved under exemption and not really a STCG since its not realized. Repeat this after one more year. Also just realize gains which are older than 1 year upto 1L only, not all of your portfolio to avoid paying for brokerage, STT etc. One advise is to do this well before March. Many retailers might do this and lead to fall of a stock and you might end up in loss.
very good concept but when you sell the share after one year tds is deducted @ 10 percent which can only be claimed after you file your returns so you need to put in 10% to buy the same amount of shares
plase ans this question If I have two apps like Zerodha and angle broking and I have unrealized gain of 1 lakh in each then what will happen if I sell those stocks do I have to give tax?
So the overall tax harvesting can be done for 100000 rs only, now when my portfolio is worth 2000000rs with about 31 holdings, overall I will be able to save only 1lakh only on overall capital gains right?
It is really exhaustive to monitor the portfolio for tax and exit load frequently... handling all these parameters takes away the fun of long term investing... Just pay the tax and enjoy the returns peacefully
The problem here is that in second year the price of share won't be 3 lakh it will be close to 4 lakh. If there is linear growth in market. So this technique doesn't make sense.
Unfortunately you have MISSED TO INFORM THREE IMPORTANT thing in this video which may lead to paying taxes even if your harvested gains are below 1 Lakh: 1. If your net taxable income is 5 Lakh then ideally there is zero tax liability but if you have harvested a single Rs. Capital gain in that year then you will end up paying taxes of Rs.12500 as section 87A relief will not be available in that case. So basically for 1Rs. Capital gain 12500 Tax amount. How? Earlier capital gain exemption was part of section-10, but this 1 lakh exemption is part of Section-112A which means this capital gain though not taxable upto 1 Lakh, but forms part of Net taxable income. And if your net taxable income exceeds 5 lakh then you will not get benefit of Section 87A tax relief, which will end up you in paying taxes. PS: If your net taxable income is above 5 Lakh then you can ignore this point. 2. If you are earning nothing OR if your taxable income is below 2.5 Lakhs then you can use remaining amount along with 1 lakh to harvest capital gain. Eg: Your net taxable income 1.2 lakhs Then you can harvest capital gain tax free upto 2.3 lakhs. How? 2.5 lakh- 1.2 lakhs = 1.3 lakhs Section 112A = 1 lakhs Total= 2.3 lakhs 3. You can warn the user of the video at the end that before taking any action do consult with your CA who can tell you all of the above things which was not the part of video. You can reach me out in case you need any clarification on above. 9098589691 or animeshsingi@gmail.com CA. Animesh Singi
@@prasadprasik6555 No, It is useful for you. Since your net taxable income is above 5 Lakhs, then in any case you are not eligible to enjoy the benefit of Section 87A. But if your net taxable income would have been below 5 lakh, then this harvesting will not be useful for you.
Important link: link.labourlawadvisor.in/shorts
Hax to Save Tax: www.taxplanningforsalariedemployees.com
Edit: Jagruk Janta have commented that buying and selling on same day counts as Intraday and app does not consider it as CG. The solution is to do it in mutual funds as it very easy to get the same NAV for buy and sell (if you place both orders on same day, during early market ours).
Make a video on this, just to clarify pros and cons
Any promo code for ordering this journal?
This harvesting way is double beneficial on ELSS funds, you not only take advantage of LTCG tax rebate up to 1lac but also save tax. Only thing is investments should complete 3 years.
Sir I have a question
If I sell a stock and buy it on the same day wouldn’t be considered as intraday transaction ?
N if it is considered as Intraday transaction the in that case I wouldn’t be able to book long term capital gain or loss.
Hey LLA team, can you guys launch the IOS app also? And I'm an IOS developer too I can help with it
Thumbnail = aag🔥
Legend has arrived
Do I need to file ITR if only income from STCG and profit less than 2.5 lakhs
Achha hai, ek dusre ko hi view, like & comment kro aap log. Alag hi scam chalu hai. 😂😂
AK bhai agaye 🤣🤣🤣
for example I hold share for 100 I sold for 200 & again buy at 200 and sold at 300 ,,
if any misshapen happen with company then there is zero margin of safety ,,,
0:19 whenever i Hear this I know the next 15-20 minutes are going to contribute in my knowledge 🤩❤️👍
@@bhatiavarun8 he said that you can sell only those share you are holding from more than 1 year... simply you can only harvest tax in the next year. (you can't apply this when you don't have any share in holding more than a year)
ua-cam.com/users/shortssWk5Nxu3PQY?feature=share
*le Government: Jor jor se chillake sabko scheme batade 🙄
Nice video btw 🤓
This guy is helping us so much to grow financial knowledge...
Wow, finance is really amazing.
I never realised we could do such a thing.
Thanks alot for the hack.
Awesome content.
Really enjoyed and loved it.
First time dekhe aapke video.jo Mann mei questions aate the,but answer kahin se nahi milte the,sab answers mil rahe hai.will see your videos regularly.Thanks a lot
First of all you will need to sell 7-10L worth of shares to book 1L profit considering 10-15% return. Second you need another 7-10 L to buy back the same stocks on the same day as broker won't release your funds immediately to buy back the sold stocks. +Extra brokerage, DP charges etc. But yes you can save some tax but it won't matter in the long run.
This video will definately be the most shared video of the year. Thanks a ton.
While taking advantage of harvesting in mutual fund, we will have to pay 0.05% stamp duty every time. that must be taken into account.
and incase of stocks, brokerage gst stt and other such charges must be taken into consideration.
That's what I was going to ask👍🏻....plzz answer sir!?
Stamp duty is 0.005% on mf
If we buy same in same day, it will be intraday that mean no quantity will be deducted and no quantity willl be added. You have to buyback that share after 1 day.
Thanks that what I was thinking
Ek aur scheme bhi hai, gift stocks ko use kar sakate hain
Last 10 min’s information is very crucial, Thank you so much for this vedio🙌🏻
You have to pay selling as well as buying brokerage 10 times each + buying price will be higher than selling price each times +STT each times . Totally impracticable !!!
Try discount brokers with 0 delivery charges, buying and selling price can be maintained by limit orders, yes will have to pay STT both time but it will be less than 1lakh per annum🤷 in short this video is legit
@@bhavenmadani3157 short term gain taxes are 15% when you sell it before 12m.
And long term taxes are 10%
Govt institutions and policy makers are smart enough to cover the loopholes.
@@mrsomvanshi7105 LTCG AND STCG will only apply if you have completely withdrawn the amount to bank but in this case we are reinvesting.
@@Jai.sharma_ That's a very good point. I think LTCG/STCG is applicable if and only if the gain hits the bank account.
Very interesting concept. Thanks.
1. In case of equity what about brokarage+stt overhead?
2. Sometimes buy and sell prices differs in same instance. In those cases what to do?
Yes u r right
Wow... Never thought of this. I just heard Tax Harvesting but never knew why it is important and how it can be implemented. It is surely a concept and on top of that surely the best video
12:35 agr 1 year s phle bech diya to STCG hoga jisme 1lakh wala benefit ni milta.. jitna accha sunne m lgta h usse bhi jyada complicated concept h y
Finally wait is over. was wondering how to sell first bought shares and not the latest of same company..Answer was FIFO .Thank you
I'd like to add one more point in the case of Mutual Funds:
Some of the Mutual Funds don't accept lumpsum deposits, so if you withdraw the units for tax harvesting, you won't be able to buy the units back because lumpsum deposits aren't allowed.
Just wanted to mention as to keep a watch on such Mutual Funds before withdrawing and regretting afterwards.
In that case you can make SIP of Lumpsum amount. For 1 month then reduce it to regular amount 😉
Which MF does not allow lumpsum?
@@areebhussain4856 Mirae Asset Emerging Bluechip Fund
@@AmanNankani I just checked, even in SIP max is ₹2500 p.m.
@@areebhussain4856 SBI small cap fund
First time i am looking at this concept and it is explained in detail. Amazing work keep going
One more pro tip: If you have invested in regular mutual funds, then place the sell order for regular units and buy order for direct plan units on the same day. You will do both tax harvesting as well as switch to direct plan which will save commissions in future.
Why did you buy regular units in the first place 😂
I am addicted to this channel...Thanks a ton for sharing wonder financial knowledge.
I am totally hooked to this channel, this is most underrated finance channel. You guys are doing wonderful work. Keep it up.
VDOs like these makes you one of the best in the business. A big thank you 🙏
⭐This financial knowledge need to be included in our school syllabus ⭐
Video aside, the thumbnail is hillarious 😜
yup 😂
I genuinely love all you videos, glad to find this channel🙏
For stocks, It will be counted as intraday transaction (not useful for harvesting), BTST or STBT can be done based on situation for harvesting. IMO.
Even i have same opinion
Open your account with two different brokers. Sell from one of those accounts and buy it in the other account.
@@aakashkumarsingh4840 Nice. This can be a workaround.
Yessss... His idea is not usfull.. He did not think about this
Same idea. Create two demat
Thank you thank you thank you.................. Sir bahut dino se inke answer khoj raha tha ...salute you sir love you sir jis tarah se aapne bataya lajwab tha behtareen tha ...
That intro music is just joshila...wow 🔥🔥🔥
Most brilliant channel on UA-cam I have ever find.👍🏻
07:25
To realize loss or profit in long term stock holdings the stock has to move out of the demat a/c so as per your saying that, buy and sell on the same day will not result in tax loss harvesting it will be considered as an intraday trade.
True buy and then selling will consider as intraday. I think the opposite of selling and buying same day should be fine
@@kersinghkunwar2819 no even that will be considered as shorting intraday trade
@@Smeetr ohoo is it, then better buy next day i think
His calculations are wrong, by savinf LTCG u have to pay STCG @15%
We should use two demat account.... In one we cal sell and other we can buy on same day at same price.. Isn't it..??
I know we have to pay sebi charges, duty and all that...
Buying and selling on the same day gets considered as intraday transaction and capital gains remain as it is. There has to be a gap of 1 day between buying and selling to harvest gain or loss
Ya this happened with me. It was no were mentioned in the video
Plz make an in-depth video explaining tax harvesting for Mutual funds, SIPs and NPS tier 2 holdings. And kindly explain the detailed process, with demonstration.
The concept of intraday trading is quite confusing. Also plz mention the charges involved in brokerage etc that one has to keep in mind while doing tax harvesting.
Sir isme huim jb share sell Krna hoga 100 pr or hum us we phale 100 ka basket order laga ke rkhenge limit order pr jis se hamra stock usi preice me buy ho jayein uske lie liquidation fund hona jruri haai good sir bahut aacha smjhaya apne cool 🕵️🤗
In case of SIP in mutual funds, even if we buy and sell for same amount on same day, still the actual average cost of units sold would have been less but cost of buying would be more thereby increasing overall average cost of the unit.
Kindly clear the doubt. If possible, make a separate video for tax harvesting in sip mutual funds with a realistic example.
plz tell me
I am below 2.5 lakh tax slab. I sell stock in less than 1 year and make profit of 2 lakhs. So do I have to pay STCG or not?
One of the most valuable video on UA-cam channel
Bahot sahi explained. Itna to paid me bhi nahi milta
Made my day ❤️
grt sir...jo soch rhe the hm itne dino se,us pblm ko clear kr diya apne
ELSS comes very handy in harvesting tax , whatever u redeem that comes automatically under LTCG , I invest around 1.2 Lakh per year and wo 3 saal badhkr atleast 60 70 hazaar ka profit de deta h.
Wat is ELSS
@@premarajan9487 Equity linked saving scheme, for tax saving.
Waquar, which MF did you invest in for the ELSS?
@@rameshrnayak Axis long term equity, currently in mirae asset
Maja agaya bhai. Unique information by LLA👏👏👏
Masterpiece ❤
Great Insight. Really a long time coming for this video. Much awaited video & keep making content like this.
I think this is more doable in MF's. In equities there's lot of factors involved like brokerage, cess, transaction tax etc
However the charges are not equal to LTCG
Yeah I do agree that. But I think it's not everyone's cup of tea
Stt and stamp charge mf me bhi lagta he
exactly! not much benefits becoz present value of brokerage etc 😂
You have to pay sell and again buy brokerage total 20 times . Overall buying price will be more than selling price everytime + STT. TOTALLY UNPRACTIBLE !!!
This video is the Bible of tax harvesting. Job well done!!!
Disclaimer: Brokerage amount is not taken. into consideration !!
CNC orders do not take brokerage for discount brokers
STT, GST, stamp duty combined will be somewhere around 2.5k for 100k of profit
@@Ayush_Bob what is this brother?
Can you explain me
@@mr.kapasi1513 Most brokers don't charge Rs: 20 brokerages if you take delivery of equity shares. But the government/sebi charge Taxes when you sell or buy shares.
@@joshuadias2468 Okay thanks
Kitna bhi manage karlo 19-20 ka farak to rahega.
Nice fully explanation good explanation fully video. Not time waste in one minute
Nice content. But I think in the year in which you finally exit you need to ensure that 12 months have elapsed otherwise Short Term Capital Gains will be applicable @15% without indexation benefit and without 1 lakh exemption. And if the price has moved very good in the final year of exit, and STCG is applicable much of the efforts of earlier years would go in vain. It's all about saving max 10,000 p.a (10% of 100,000) for each period of holding. In hindsight this looks good, but in real time much efforts involved for a small percentage of saving.
professors aur teachers bhi itne acche se nahi bata pate jitna inhone bata diya hai
For tax harvesting If we buy the shares first and then sell the same number of shares on same day then it will be counted as intraday and the shares in demat account will not be debited. So in any way we need to do these buy and sell on different trading days
Agreed
Sell first, Buy after
@@HarshJain2005 Even that is considered as intraday
@@harishwarreddy9114 Not if you sell stocks that are in your holdings. For LTCG you have to sell the stocks that you have in your demat account, if you sell those and then buy delivery of same amount it wouldn't be considered intraday.
His calculations are wrong, by savinf LTCG u have to pay STCG @15%
bhai g aapne bahut sahi bataya but shere sell aur buy krne par bhi charge lgta hai uska bhi khyal rakhna chahye aapko, shere buy krne ke liye advance paisa bhi hona chahye, tension rahega vo alag, is tarah se app mushkil se 30000-40000rs hi bacha payenge
I got it, its not so simple. I think it will effect Dividend right?
How about brokerage fee every time you Buy/Sell ?
Plus what about Spread you face every time you buy/sell?
Thanks for this nice and most useful video. It is practicable. But, firstly, it is very cumbersome. Secondly, the tax saved will have to be invested again and in this way one will have a big corpus after say 10 years and one time will come when he will not be able to save tax.
This cannot be replicated in equity on the same day, cos the transaction will be considered will be as intra day and the shares won't be debited from your demat account.
Only exception would be trade to trade shares where you can purely trade deliver only.
To replicate your theory, , u can buy shares the next session.
Bhai love you yr
Mtlb jo hum sochte rhte h
Aap kr k bta dete ho
Waah..
Always like ur all videos..
If we BUY and SELL on the same date; both the transitions will be considered as an intraday trade. Please clarify this.
I already faced this issue in GROWW APP.
To avoid this issue, I calculate the 365 days old quantity from holding and BUY the same quantity on Day 1 and SOLD it on the next Day 2 or whenever I got the same or more price of my holding.
This is how I do my "Tax Harvesting".
He is not telling to sell on the same day. He told after the completion of an financial year you sell it.
Buying on day 1 and selling on day 2 will cost you with stcg
"If we BUY and SELL on the same date; both the transitions will be considered as an intraday trade. Please clarify this" YES , it will be considered under speculative profit/Loss and it need to be reported as a business income not Capital Gain/Loss. In platforms like Zerodha you can select Scrip either from Holdings section or Position . If you sell from Position section , it becomes "Intraday" but if you sell from Holding then it's Capital gain/Loss. tbh GROWW is good for MF only but not for Stocks
Wrong. I explained the FIFO concept in the video.
Your new buy order will bring you a new share (0 days old)
But your new sell order (place the order from holdings, not positions), will sell the share that you bought earliest. (Minimum 365 days old, or more).
No tension of intraday. 2 shares are different.
@@siddharthdas1479 I have a query, Is LTCG applicable for shares & MFs bought ONLY after 2018?
@@LabourLawAdvisor ok, let me verify it tomorrow by placing a buy and sell order on same day for my 365+ days old stock.
Bahut achha samjaya he.. good job
What about STCG ? The tax rate is 15% when we sell the stocks within 1 year. It is better to pay 10% instead of 15%. Isn't it?
Pay tax no option, short term has no tax savings only way to escape from tax is hold more than 1 year
Exactly my question
@@aadarshwali2629 so basically we have to pay stcg
@@ankurz yes! pay the tax or hold more than a year until gains reach to the extent of 1 lakh
@@ankurz may be we are missing something....have to check and analyse section 112A and 111A...may be its a big loopholes written in tha tax law
Thank you - today just i have seen one of your videos then I am watching fifth video - I became fan. thank you
Retailers use tax harvesting to save tax. Rich people use Panama
Ultra rich use Pandora
@@sahilgarg94 legends go to UK
Best video on Tax harvesting....
I have a Doubt ... does Intraday loss be used to offset STCG and LTCG ?
Btw I've bought the journal as a token of appreciation for teaching this concept .
Thanks a lot ❤️
And, no. Profit from intraday is not considered capital gain. it's speculative income and goes under business head.
Intra day loss is shown under business head and if you have income under head capital gains then you can set off business head loss from capital gain head income!
Thanks Sir for all the knowledge sharing. Specially middle class people lack clarity on what is Investing. And you have brought lot of clarity in peoples mindset.
My question is,
1. Is there any way for tax harvesting for only SIP investors because the ones you explained works for sumsum in my opinion?
2. Suppose i invest in Quant Active mutual fund, Do they keep changing companies present in this fund and invest in them based on assessing the current market situation every other day Or They stick with them forever Or They change after longterm(>5 years)
Thank you again!
+1
Hi Rishabh, amazing content as usual.
I have one question related to executing Tax Harvesting. If I keep on harvesting the LTCG of my portfolio, it becomes extremely challenging to quantify my portfolio returns.
For e.g. the case of the ABC share you gave if you don't harvest LTCG every year, you have a clear understanding of how ABC and for that matter, your entire portfolio is performing, given you have the actual CAGR/XIRR. But if you harvest LTCG every year, let's say after 4-5 years, it becomes challenging to observe the performance of the stock. I mean here it is just ABC so we can directly check the prices/growth on any platform. But what if we have a larger portfolio with let's say 40 stocks and 5 mutual funds. In that case, what can we do to have a clear understanding of the performance of our portfolio?
Thanks in advance :)
Short term capital gain tax is 15% if sold before 12m, policy makers are IRS officers and financial experts they are not ignorant.
Lack of information is always dangerous!
I am below 2.5 lakh tax slab. I sell stock in less than 1 year and make profit of 2 lakhs. So do I have to pay STCG or not?
@@indian2817 NO
But it still doesn't matter, u can manually calculate it
4:37 I am confused about your statement on the compounding of share. Does investment in the stock market even offer compounding?
But buying & selling on same day is treated as intraday. Then, how it can be used to offset ltcg
😂
Use different dp
bhaiya FIFO lagega na .....
@@technique9915 fifo toh tab lagega, jab trade cnc ho. But same day buy/sell ya opposite karne se dono trades intraday count honge, na ki delivery. Hence, no tax harvesting
@@visheshagrawal5122 Eg- You buy 10 shares 1 year ago, now you want to harvest tax. Buy 10 shares and sell 10 at the same price today. You still have 10 shares now and you harvested tax. (Due to fifo 1year ago shares will be squared off with sell and not the today bought ). So no intraday.
For MF
BUY - 100 UNITS - Rs. 100 NAV - 100K CAPITAL
SELL - 100 UNITS - Rs. 200 NAV - 100K CAPITAL & 100K GAINS
BUY - 100 UNITS - RS. 200 NAV - 200K CAPITAL
simple transition from 100k gain + 100k capital to
200k capital.
Thanks Rishabhji for covering edge cases too.
If u sell the shares on the same day and buy it back , doesn’t it mean that its intraday gain and not capital gain ????
I think it comes under business income
Boss you are selling the share and then buying it for future
There is an exemption of 1L. You will only have to pay STCG if you realize it meaning only if you sell within 1 year of purchase. Example: On March 1st this year, you have 3L of which 2L is profit which you bought on last day of Feb, last year. So your effective LTCG is at 2L. Of which you are exempt upto 1L. In order to get this exemption realize you're gain and buy back before 1st of April. So you're effective final taxable gain is only 1L instead of 2L. So you save 10000. Since you buyback more or less at the same amount you will have approx. 3L in your portfolio.
So the other 1L is saved under exemption and not really a STCG since its not realized. Repeat this after one more year.
Also just realize gains which are older than 1 year upto 1L only, not all of your portfolio to avoid paying for brokerage, STT etc.
One advise is to do this well before March. Many retailers might do this and lead to fall of a stock and you might end up in loss.
Got some better clarity in this one than that shorts video
If we sell our stocks which are in loss and buy them at the same price,just to set off ltcg,shall not we be about to pay more stcg tax or ltcg tax on this new bought share?
Because the gain would be more from the lower value bought rather than from the earlier value.
Kindly reply rishab sir.
umm exactly same ques came to me.. aise to wo STCG me ajaega.. but here is a catch.. yaha par he is saying unn stock ko becho jo 1 saal se pehle khreede the... so, neither STCG applicable here. and LTCG also not if profit is under 1 lac... i hope mai smjh gaya ya nahii pata nahi 😂😂
@@amansrivastava3524 My question is,if I book loss on a share of stock A just to setoff tax on profit earned on share of stock B,it means I am repurchasing the share of Stock A at a price lower than the price that i bought earlier which implies I have to pay more stcg Or ltcg on gains of share of stock A as I purchased it now at a lower price.
If there is a loss, no tax will be applicable. As it is not a gain (STCG) but a loss i.e. STCL.
@@Hello-uu9re you are right, when you will sell this share in future, you will have to pay higher capital gain tax as the new cost is lower.
I really appreciate the work you guys do.. keep it up👌👌👌
Sachin Tendulkar be like : it's more easy to park money in Pandora and save tax.
At 15:46, you mentioned that it is advisable to do tax harvesting before March itself, but I guess then short term capital gain can get applicable at 15% flat. In that case tax isn't saved.
I tried tax harvesting this year , you have to re-buy it the next day only at the earliest . In my first attempt I sold and then bought the same day and it didnt considered it as CG sold. It treated it as future option and the next day those shares were still showing as 365+ days old
In my second attempt I sold and bought the next day and everything was correct as discribed in the video
Can you comment if this happened with anyone else or I did something wrong?
you're correct man!! some people will only advice and they are right theoretically but not practically, because they don't do it themselves.
Ultimately sold 1 and bought 1. No profit
If u do NSE to BSE that is buy the stock in NSE n sell ur old delivery in BSE u cam achieve it the same day.
So cost will definitely go up as delivery brokerage will be charged from you.
May be because the shares didn't went out of your demat account. May be it requires for the shares to move out of your demat account and then you buy again, it will show fresh buy. May be. I'm not sure.
It takes T+1 day to deposit in your account. Before sept 2021 it use to take T+2 days. So your share will be considered as sale only after closing the market. Unless that time it will be considered as short sale. ( It you have given POA to your broker )
Thank u sir... I will use this method to withdraw the money from my ELSS... in such a way that total profit in one financial year does not exceed the 1 lakh limit....
Sir, if we harvest in between many times we will incur STCG , & have to pay 15% tax
Same question
Same question
Sell after every 366 days then. Just keeping in mind that realised profit should be less than 1 lakh.
Well you just have to sell stocks only if it is there for more than a year otherwise don't sell it as it comes under STCG.
And in between harvesting comes when you have multiple stocks who's maturity age of 1 year is different from each other...
So in between so can book profit for the bundle of stocks
There is an exemption of 1L. You will only have to pay STCG if you realize it meaning only if you sell within 1 year of purchase. Example: On March 1st this year, you have 3L of which 2L is profit which you bought on last day of Feb, last year. So your effective LTCG is at 2L. Of which you are exempt upto 1L. In order to get this exemption realize you're gain and buy back before 1st of April. So you're effective final taxable gain is only 1L instead of 2L. So you save 10000. Since you buyback more or less at the same amount you will have approx. 3L in your portfolio.
So the other 1L is saved under exemption and not really a STCG since its not realized. Repeat this after one more year.
Also just realize gains which are older than 1 year upto 1L only, not all of your portfolio to avoid paying for brokerage, STT etc.
One advise is to do this well before March. Many retailers might do this and lead to fall of a stock and you might end up in loss.
very good concept but when you sell the share after one year tds is deducted @ 10 percent which can only be claimed after you file your returns so you need to put in 10% to buy the same amount of shares
Who will deduct LTCG, do we need to pay during ITR Filing or it will be deducted automatically when we sell units or stocks.
No but automatically but while filling itr with ca
-Tarun Joshi
The LTCG has to be paid for by the investor himself during the filing of taxes.
That thumbnail😂😂😂👌👌👌👌👌
I am in US but this video was even helpful for my tax situation. I trade US market only.
plase ans this question
If I have two apps like Zerodha and angle broking and I have unrealized gain of 1 lakh in each then what will happen if I sell those stocks do I have to give tax?
Yes
If gain is more than 1L, then yes.
Thank you very much sir
Best learning from your channel
So the overall tax harvesting can be done for 100000 rs only, now when my portfolio is worth 2000000rs with about 31 holdings, overall I will be able to save only 1lakh only on overall capital gains right?
Yesn't
😜PW sir and now here the thumbnail is epic🔥😂
Sir video complicated hai thora simple me bataye
Simply superb sir!🙏
It is really exhaustive to monitor the portfolio for tax and exit load frequently... handling all these parameters takes away the fun of long term investing...
Just pay the tax and enjoy the returns peacefully
You are awsome bro always ur vedios are encouraging, educational
is anyone of 15 years old here ???
15*2😅
The problem here is that in second year the price of share won't be 3 lakh it will be close to 4 lakh. If there is linear growth in market. So this technique doesn't make sense.
Unfortunately you have MISSED TO INFORM THREE IMPORTANT thing in this video which may lead to paying taxes even if your harvested gains are below 1 Lakh:
1. If your net taxable income is 5 Lakh then ideally there is zero tax liability but if you have harvested a single Rs. Capital gain in that year then you will end up paying taxes of Rs.12500 as section 87A relief will not be available in that case. So basically for 1Rs. Capital gain 12500 Tax amount.
How?
Earlier capital gain exemption was part of section-10, but this 1 lakh exemption is part of Section-112A which means this capital gain though not taxable upto 1 Lakh, but forms part of Net taxable income. And if your net taxable income exceeds 5 lakh then you will not get benefit of Section 87A tax relief, which will end up you in paying taxes.
PS: If your net taxable income is above 5 Lakh then you can ignore this point.
2. If you are earning nothing OR if your taxable income is below 2.5 Lakhs then you can use remaining amount along with 1 lakh to harvest capital gain.
Eg: Your net taxable income 1.2 lakhs
Then you can harvest capital gain tax free upto 2.3 lakhs.
How?
2.5 lakh- 1.2 lakhs = 1.3 lakhs
Section 112A = 1 lakhs
Total= 2.3 lakhs
3. You can warn the user of the video at the end that before taking any action do consult with your CA who can tell you all of the above things which was not the part of video.
You can reach me out in case you need any clarification on above.
9098589691 or animeshsingi@gmail.com
CA. Animesh Singi
Means...If my taxable income from salary is above 5lac, then LTCG tax harvesting isn't useful for me
@@prasadprasik6555 No, It is useful for you. Since your net taxable income is above 5 Lakhs, then in any case you are not eligible to enjoy the benefit of Section 87A.
But if your net taxable income would have been below 5 lakh, then this harvesting will not be useful for you.
Crystal clear.
Thanx buddy
In Pakistan, we have to pay 0% tax on a stock after holding it for 4 years
You are Lucky mann 🥲
All the best for upcoming 2M
Thank you sir for giving us most important technique for saving our hard earn money
Good teaching style sir thank you so much
Very helpful video..specially bonus tip at the end..
Thank You so much for this video. Was waiting for this one. Most of my doubts are clear.
Good video for retail investor not for corporate investor
As Always Valueable Content 💥
thank you so much sir.. m bhut confuse tha .mera sara confusion door ho gya