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Tax harvesting calculator.
The first ₹1.25 lakh of long-term equity gains each year is tax free, and an unused year is gone. Selling enough to book that much and buying straight back resets your cost, so less is taxed later.
Gains on shares and equity funds held over a year that you have not sold. Your broker's tax P&L shows it.
Sell and buy back gains of
₹1,25,000
That uses this year's tax-free limit and saves ₹16,250 of tax later. Done every year for 10 years, it saves about ₹1,62,500.
- Tax-free room left this year
- ₹1,25,000
- Gains to book
- ₹1,25,000
- Tax saved later
- ₹16,250
How it adds up
- Tax-free each year₹1,25,000
- minusAlready booked₹0
- equalsRoom left₹1,25,000
- thenGains you can book₹1,25,000
- times12.5% plus cess, saved later₹16,250
What this assumes
Listed shares and equity funds held over a year, taxed at 12.5% plus cess above the limit. India has no rule against buying back the next day. Leaves out brokerage, any exit load on funds, and that units bought back start a fresh one-year clock.
Rules and rates from
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
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