https://v2.webnotes.in/tags/year-end-tax-planning/Recent content in Year-End Tax Planning on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-tax-loss-harvesting-zerodha/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-tax-loss-harvesting-zerodha/<aside class="callout callout--warning" role="note"> <strong class="callout__label">Informational only, not tax advice</strong> <div class="callout__body">Tax-loss harvesting involves timing trades to achieve a tax benefit. The effectiveness depends on your total capital gains, holding periods, tax regime, and other circumstances. This guide does not constitute tax advice. Consult a Chartered Accountant before executing year-end tax trades.</div> </aside> <p>Tax-loss harvesting is the practice of selling securities that are showing an unrealised loss before the end of the financial year to realise the loss, offset it against capital gains, and reduce the overall tax liability. Under the Income Tax Act 1961 and as amended by the Finance Act 2024, <a href="https://v2.webnotes.in/capital-gains-tax-india/">capital gains tax</a> rates on listed equity are 20% for short-term gains (<a href="https://v2.webnotes.in/section-111a/">section 111A</a> ) and 12.5% on LTCG above Rs 1.25 lakh (<a href="https://v2.webnotes.in/section-112a/">section 112A</a> ). Harvesting losses before 31 March can meaningfully reduce the taxable gain, particularly for investors who have accumulated significant unrealised losses in a falling market.</p>