TAX ON INVESTMENT

HOW TO REDUCE TAX ON INVESTMENTS

Published By Livemint | 26 Mar, 2023

INVESTMENTS

Other than income & business, people have to pay taxes on investments
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SAVING TAX

Know how to manage investments and liability to save tax
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WHAT IS TAX HARVESTING?

By selling off losing stock investments/mutual funds, one can offset gains & reduce tax liability
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CAPITAL ASSETS

Investment assets like land, house, stocks, jewellery, property, etc
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CAPITAL GAINS TAX IN INDIA

Applicable on the profit made from the sale of a capital asset
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CAPITAL GAINS TAX TYPES

Applied as long-term capital gains tax and short-term capital gains tax
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LONG TERM CAPITAL GAINS TAX

Applied on investment sold after a year and for an amount more than 1 lakh
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SHORT TERM CAPITAL GAINS TAX

Applicable on investments sold within 1 year, have to pay 15% of the profit as STCG
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HOW TO REDUCE LTCG?

Sell profit-making stocks before the amount exceeds 1 lakh
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TAX HARVESTING

Sell the loss-making stock. Deduct loss from the profit booked from another stock to reduce taxable gains
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STCG LOSSES

STCG losses can also be used for tax harvesting in STCG as well as LTCG
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