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Tax Loss Harvesting Calculator

Calculate capital gains tax and identify opportunities for tax loss harvesting on your stock portfolio

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Disclaimer: This calculator is for informational purposes only. Tax laws are subject to change and individual circumstances vary. The calculations do not account for surcharge, cess, or set-off of losses from previous years. Consult a qualified tax advisor before making any tax-related decisions.

What is Tax Loss Harvesting?

Tax loss harvesting is a strategy used by investors to reduce their tax liability by selling investments that are at a loss and using those losses to offset capital gains from profitable investments. In India, this is particularly useful towards the end of the financial year (March) when you can crystallize losses to reduce your overall tax burden.

Frequently Asked Questions

What is tax loss harvesting in India?▾
Tax loss harvesting is a strategy where you sell loss-making investments to offset capital gains from profitable ones, reducing your overall tax liability. In India, short-term capital losses can offset both STCG and LTCG, while long-term capital losses can only offset LTCG. You can carry forward unabsorbed losses for up to 8 assessment years.
What are the STCG and LTCG tax rates on stocks in India for 2026?▾
For listed equity shares, Short-Term Capital Gains (STCG) are taxed at 20% under Section 111A. Long-Term Capital Gains (LTCG) exceeding the exemption limit of Rs 1.25 lakh are taxed at 12.5% under Section 112A. LTCG is applicable when shares are held for more than 12 months.
How is holding period calculated for STCG vs LTCG?▾
For listed equity shares, if you hold for more than 12 months from the date of purchase, gains are classified as Long-Term Capital Gains (LTCG). If held for 12 months or less, gains are Short-Term Capital Gains (STCG). Each share lot is tracked separately for holding period calculation.
Can I buy back the same stock after tax loss harvesting?▾
Yes, you can buy back the same stock after selling it for tax loss harvesting. However, be mindful of the wash sale considerations. While India does not have a formal wash sale rule like the US, the tax authorities may disallow the loss if the buyback is done too quickly with the sole purpose of claiming a tax benefit. It is advisable to wait a reasonable period before repurchasing.

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