Tax Loss Harvesting Calculator
Calculate tax savings from harvesting capital losses to offset gains with STCG and LTCG optimization
What is tax loss harvesting?
Tax loss harvesting is a strategy where you sell investments at a loss to offset capital gains and reduce your tax liability. The losses can be used to offset gains in the same financial year.
Can STCG loss offset LTCG gain?
Yes, short-term capital losses can offset both short-term and long-term capital gains. However, long-term capital losses can only offset long-term capital gains.
What happens to unused losses?
Unused capital losses can be carried forward for up to 8 assessment years. They must be reported in your ITR even if you don't have gains to offset in the current year.
When should I harvest losses?
Ideally before the financial year ends (March 31st in India). However, ensure you follow the wash sale rule - don't buy back the same security within 30 days to maintain the loss benefit.