Tax Loss Harvesting
I really appreciate your work and also would like to say that this time the cover story, ‘Is it the Right Time for Capital Gain Harvesting?’ was really helpful. Further, I would also like to know about capital loss harvesting and when and how to switch between them.
- Sandeep Deshpande
Editor Responds
In capital loss harvesting you can sell those funds or stocks at loss which do not have much chance to gain. The loss so booked can be used to set off any capital gain so that in total you reduce your tax liability. The Income Tax Department allows investors to set off capital losses against capital gains to reduce tax liability. You can set off long-term capital losses against long-term capital gains only. On the other hand, short-term capital losses can be set off against both long-term and short-term capital gain.