Hi there! 
Stock markets haven’t been too kind lately. Portfolios are bleeding, and with all the global uncertainty, the usual optimism feels a little distant. If you’re wondering what now? Here’s the thing: your losses can actually help you save tax.
Tax-loss harvesting lets you turn your losses into an advantage by reducing your capital gains tax. And goodness, if you’ve got profits sitting in your portfolio, don’t let them sit idle. Tax gain harvesting helps you book profits strategically to make full use of your ₹1.25 lakh LTCG exemption.
These opportunities are only available until 31st March.
It’s not just about harvesting, though; it’s the final sprint for everything year-end. This is your last chance to invest in tax-saving options like NPS, ELSS, or insurance premiums if you’re claiming deductions under the old regime. Plus, if you’ve missed filing your ITR for past years or need to fix an error, you can still do it by filing an updated return.
There are probably a handful of other things sitting on your to-do list that expire with the financial year. To help you stay on track, we’ve put together a 10-point year-end checklist, so you don’t leave any money on the table.
While the financial year ends on March 31st, the stock market is closed on the weekend. This means Friday, March 27th is your last chance to execute Tax Harvesting trades,
TOP THREADS
How to save tax using tax-loss harvesting?
Tax loss harvesting turns your investment losses into a tax benefit. When you sell at a loss, you can use it to offset profits from other investments and pay less tax overall. But there are a few important rules to keep in mind before you…Continue Reading
How can I save tax on capital gains using tax-gain harvesting?
Tax-gain harvesting helps you save tax by booking your profits smartly. Each year, you can realize up to ₹1.25 lakh in long-term capital gains from listed stocks and equity mutual funds completely tax-free. Any gains above this are taxed, so you need to…Continue Reading
Here’s your year-end checklist to complete before March 31
March is the final month to review your income, claim deductions, and make tax-saving investments under the old regime. It’s also the time to submit investment proofs to your employer, pay any pending advance tax, and complete tax harvesting. To make it easier, here’s a handy checklist covering all the key financial tasks…Continue Reading
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FAQs
Can I set off my short-term losses against long-term gains?
Yes, short-term losses can be adjusted against both long-term and short-term gains. Whereas long-term losses can only be set off against your long-term capital gains.
Why would I sell an investment that’s making a profit?
Because you can book up to ₹1.25 lakh in long-term gains from stocks and equity mutual funds without paying any tax. If you don’t use this limit, it doesn’t carry forward to the next year.
Can I claim my NPS contribution under the new tax regime?
Yes, your employer’s contribution to NPS is allowed as a deduction under Section 80CCD(2). However, you cannot claim a deduction for your own NPS contribution under the new regime.
RESULTS FROM LAST DIGEST
What’s the new tax-free limit on gifts from your employer?
A) ₹10,000 (12%)
B) ₹5,000 (0%)
C) ₹15,000 (63%) 
D) ₹20,000 (25%)
63% of people chose the right answer. Well done!