Tax Loss Harvesting

Tax Loss Harvesting is currently used as a yielding strategy for tax management purposes. However, it may remain unknown or unpractised to the maximum benefit by the regular investors.

So let’s see what Tax Loss Harvesting means Tax Loss Harvesting refers to the tax management strategy where the stocks and securities are sold at loss to square off the tax liability arising due to the profit-making sale of other stocks and securities.

Such a strategy to set off the capital losses against capital gain is especially beneficial now when LTCG (Long Term Capital Gains) tax is imposed on equity sale, including equity mutual funds. Even regular investors can resort to Tax Loss Harvesting.

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