✅ Legally Reduce Your Tax Liability & Maximize Returns
At Riddhi Siddhi Share Brokers, we believe that smart investing is not just about earning profits, but also about saving taxes effectively. One of the most powerful and often overlooked strategies is Tax Loss Harvesting – a legitimate method to optimize your portfolio and reduce your capital gains tax liability in India.
📌 What is Tax Loss Harvesting?
Tax Loss Harvesting is a tax-saving strategy where investors sell their loss-making stocks or mutual funds before the financial year ends to offset capital gains and reduce tax liability. These booked losses can also be carried forward for up to 8 assessment years, helping you offset future gains.
✔️ A legal, effective, and highly recommended strategy by Riddhi Siddhi Share Brokers for all smart investors.
📊 Capital Gains Tax in India: Updated for FY 2024-25
🔸 Short-Term Capital Gains (STCG)
- Applies to stocks/mutual funds held for less than 12 months
- Tax Rate: 20% on profits (post July 22, 2024)
🔸 Long-Term Capital Gains (LTCG)
- Applies to holdings above 12 months
- ₹1.25 lakh per year is tax-free
- Gains above this limit are taxed at 12.5% (post July 22, 2024)
📅 Why Tax Harvesting is Crucial Before March 31
To maximize benefits, Riddhi Siddhi Share Brokers recommends executing Tax Harvesting before the financial year ends.
📌 Cut-off Date for Selling: 26th March
📌 Buy-back Date: 27th March
This allows you to retain your investment position without missing tax benefits.
📈 How Does Tax Loss Harvesting Work?
- Identify Loss-Making Assets in your portfolio
- Sell those investments before 31st March (preferably by 26th March)
- Offset STCG and LTCG using these losses
- Carry forward excess losses for up to 8 years
- Buy back similar (not identical) stocks/funds to maintain investment exposure
- File your ITR correctly to claim carry-forward benefits
💡 Benefits of Tax Loss Harvesting with Riddhi Siddhi Share Brokers
- ✅ Save Lakhs in Taxes Legally
- ✅ Clean Up Underperforming Holdings
- ✅ Use LTCG Exemption of ₹1.25 Lakh Smartly
- ✅ Carry Forward Losses for 8 Years
- ✅ Reduce Tax Drag & Improve Net Returns
- ✅ Professional Guidance from Tax Experts & SEBI-Registered Brokers
📊 Real Example: Tax Harvesting in Action
- STCG: ₹15 Lakh → Tax @20% = ₹3 Lakh
- Booked Loss: ₹5 Lakh
- New Taxable Gain: ₹10 Lakh → New Tax: ₹2 Lakh
💰 Tax Saved = ₹1 Lakh
Even if the loss exceeds the gains, you can carry it forward for 8 years, ensuring long-term tax efficiency.
💼 Advanced Strategy: LTCG Reset Hack
Every year, sell stocks with LTCG up to ₹1.25 lakh (tax-free) and immediately buy them back to reset the cost base.
➡ This reduces future taxable capital gains and compounds your tax savings – a strategy trusted by experienced investors at Riddhi Siddhi Share Brokers.
🚫 Common Mistakes to Avoid
- ❌ Buying back the same stock too early (Wash Sale)
- ❌ Not filing losses in your ITR (no carry forward allowed)
- ❌ Ignoring the ₹1.25 Lakh LTCG exemption
- ❌ Delaying Tax Harvesting until the last moment
📢 Start Tax Harvesting Today with Riddhi Siddhi Share Brokers
Our team helps you analyze your portfolio, plan your tax strategy, and execute Tax Harvesting seamlessly. Don’t miss this golden opportunity to save tax and strengthen your investment returns.
📞 Need assistance? Contact us now!
📍 Contact Details:
Riddhi Siddhi Share Brokers
Shop No. 7, Shree Ram Bhavan, Opp. Hamirmal Tower,
Station Road, Bhayander (W), Mumbai, Maharashtra – 401101