@Bharti_Vasvani @Hem_Shah if you can help here.
Hello @Vijay_Sharma,
As of now, there are no rules/ regulations in place for/ against Tax Loss Harvesting in India. If an ITR is taken up for scrutiny at that time all information reported can be questioned by the IT authorities including stocks sold and bought, Incomes etc
Hope this helps!
Thank you for the clarification.
Tax loss harvesting does not imply that you have permanently sold a stock. There are two primary methods to consider tax loss harvesting.
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Family Account Strategy: You can sell a stock in your account and then buy the same stock in one of your family members’ accounts at the same price, especially if you manage a combined portfolio. For instance, if you sell the stock in your account and your spouse can buy the same stock, the stock remains in your family’s hands. When the price increases, your spouse can sell them at higher price . This strategy does not have price risk.
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Fresh Purchase Strategy: You can buy the same stock again in the same quantity the next day. This means that your holding will be counted as a fresh purchase. However, this method can lead to either a loss or a profit of the following day. For example, if I sold a Tata Steel share today for Rs 145, I might buy it back tomorrow when the price could be Rs 150 or Rs 140. If the price goes down to Rs 140, I would make profit of Rs 5; if it rises to Rs 150, I would incur loss of Rs 5. If the price remains the same, there would be no gain or loss.
Lastly, please remember that tax loss harvesting involves both side brokerage fees and the Securities Transaction Tax (STT) as well as demat charges. Keep this in mind while planning your tax harvesting transactions.
Ram Agrawal
Hi,
I have unrealised gains on my long term equity portfolio. If I sell part of my stock on NSE and buy it immediately on BSE, can I claim the LTCG exemption upto 1.25 lakhs ?
Hi @Ankur_Jain1
Yes, Long Term capital gains are exempt up to 1.25 Lakhs in a Financial Year. Therefore, if you sale out your long-term holdings, then long term capital gains upto 1.25 Lakhs shall not be taxable. Hope this clarifies! Reach me out on instagram @fintaxsnippets in case of any concerns.
Thanks,
Pulkit
My query is - When option contract is exercised on Expiry day, we need to give physical delivery of stocks from our Demat Holding to broker for physical settlement. Is giving physical delivery of stocks consider as Capital income (STCG/LTCG) or F&O income?
As Giving physical delivery from Demat Holding is considered as “Sale of stocks”.
So, is it needed to report in ITR as Capital income or F&O income ?
| Hi, |
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| For the purpose of tax loss harvesting, I have sold some equity shares that are in loss on 30th Mar 2026 and bought back the same quantity of the same company on the same day itself. To be clear, I bought the ‘n’ number of shares of company XYZ on 16th Mar 2026 , sold all the ‘n’ quantities of XYZ on 30th Mar 2026 (31st Mar is holiday) and then re-purchased the same ‘n’ number of shares of XYZ on 30th Mar 2026. . I expect this to reflect in my capital gains calculation as short term capital loss, but not appearing so. I mean if I already had short term capital gains of value “CG1” and the loss I incurred with the sale on 30th Mar is “CG2”, then I expect my short term capital gains to be “CG1-CG2” for FY26. But my broker (zerodha) trading account P&L report of FY2026 still shows CG1 as my short term capital gains. Can someone please confirm that my expectation is correct and broker account calculation is incorrect ? Thanks in advance for your support. |
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Thanks
Mani
Hello @Manigandan
The delivery settlement follows a T+1 cycle, which means that even though you execute a trade today (T day), the actual settlement happens on the next trading day (T+1). So, at the end of the same day, your trade is still considered unsettled and remains open in the system.
Because of this, any profit or loss arising from the trade is not yet realized or recognized in the broker’s profit and loss statement on the trade day. It will only be reflected once the settlement is completed on the settlement day.
Hope this helps !!
Hello @Priyanshu_Agarwal
Thanks for your reply. So you mean, since I did intra-day trade on last day of FY2026, it cannot be accounted in short term capital gains (STCG) calculation. To account in STCG, I should have waited for one day and then bought the shares back. Is my understanding correct?
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Apologies for the late reply Sir, your understanding is correct!
Thank you @Diti_Savalia for your reply.
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