Tax Loss Harvesting: An Indian Market Perspective

Even since the rise of the US investment company Wealthfront tax-loss harvesting has become a buzzword. Being an investor, your taxation is really as per the IT slab. The great thing about declaring your trading as a small business is that any expenditure incurred towards trading (internet bills, cost of advisory, financial papers, depreciation of your computer, and more) can be offset from your income. If you are an investor (long tern man), any gain that you make in a stock by holding for further than 12 months (long-term capital gain) is exempt from taxes.

Any gain you make by selling your stock before 1 year (short term capital gain) is taxed at 15% of the gain. Tax-loss harvesting is a smart way to improve your post-taxes profits. It involved booking any unrealised reduction to reduce the tax outgo on your realized revenue before the end of the financial year. How can traders do Tax loss harvesting? Like a trader, any gain is a business gain, and any loss is a business loss.

So, if you have world-wide web realized business gain (short-term capital gain, long-term capital gain, F&O income) you may have to pay up to 30% as fees predicated on the slab you fall in. This taxes outgo can be reduced by raising any business reduction which would mean you could sell any stock what your location is making either a short term or long-term capital loss and utilize this to reduce your tax outgo. You have sold the stock Once, like explained above you can either buy back a similar stock immediately or await the stocks to be shipped from your seat and purchase back the same stock again after two days.

As an investor, your can trip any other business earnings (any income of yours excluding salary income) against this loss as well. Note: You have to ensure that to book the loss for this financial year, you have to exit the stocks before the financial calendar year ends. And think about investors?

As an investor, if you have any short-term capital increases for the entire year you will need to pay 15% of the gas tax. If you do stocks seated in your portfolio making a short-term capital reduction, you can book this loss, set it off against the gains, and reduce your tax outgo hence. So assume you have made Rs 1 lakh in trading profits from your short-term equity delivery trades. This might mean your tax responsibility is Rs 15,000 with this gain. In the event that you had shares in your portfolio that are making Rs 50,000 in short-term loss, you can sell these and book the loss.

To make up for the stocks that you sold to book losses, you can either immediately buy an identical stock or wait around till those stocks and shares are delivered from your seat to get them back again. If you sold ICICI Bank or investment company to book a loss on Monday, you can either buy say a HDFC Bank or investment company immediately for the same value or wait for Wednesday to buy back ICICI Bank or investment company again. As a buyer, long-term gain is exempt from fees, and therefore you can’t use long-term capital loss to adjust against short-term gain. Only short-term capital reduction can be modified against short-term capital gain.

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Uighurs are generally Muslim people who live in China’s far western region of Xinjiang, where hundreds of individuals have died in the past few years, mainly in unrest between its 10 million Uighurs and the cultural majority Han Chinese. China has blamed much of the unrest on separatist Islamist militants, though privileges groups and exiles say anger over tensing Chinese handles on the religion and culture of Uighurs is more at fault.

On Wednesday, Italian law enforcement asked Dolkun Isa, the overall secretary of the Munich-based World Uyghur Congress, to come with them for an identification check. At the time, he was walking with co-workers to the Italian Senate building, where he was to have spoken on the limitations facing Uighurs in China, Radio Free Asia (RFA) said.

Isa told RFA he demanded to know why he had been detained and the officials had said they acted on the demand from China. Reuters cannot confirm the statement individually. Italian police didn’t comment, but the Italian Radical Party, which invited Isa to Italy, confirmed he had been detained. According to RFA, Isa, a German national sense 2006, alerted German regulators of his detention by a mobile phone while Italian police got him to a close by police train station.