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Few Important Points to Note: 1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading. 2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios) 3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
Few Important Points to Note: 1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading. 2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios) 3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
So brother, while filing the IT return how did you show it? I have never filled IT return before but this will be my first time. Can you please tell how to show the net result of this tax harvesting activity
Can you clarify when we have realised a loss why we need to buy that stock again for this tax harvesting concept to take place ? What if we just realised the loss and choose to invest somewhere better?
Instantly buying back will not considered as intraday, because the delivery of buying Is different for intraday (generally called as position) and holding (u can sell only next day)
Ankur, I think u missed one important point in this video.. 1. In second year onwards, when you are sellling and purchasing again the assets, the prices of stock will change by current date price. Hence, the exact gain for each year will change also..
One important thing missed here is.... what if the value of stocks is high or low while selling or buying the same stock....entire calculation changes,so think about that as well
i guess no because let's say even if you're at a loss at the end of year, you can still buy the same number of stocks with that price and as you invested you are bullish on the stock in long term, which means you expect profit after 5 years or something, you would still earn as much profit as you should after 5 years, plus saving taxes on that, I ain't experienced in the market as of now, so correct me if i am wrong
We need to watch the broker/SEBI/DP/transaction charges while selling and buying immediately. May work for people with small portfolio were they can offset until 1 lakh gain. But may not be possible for bigger portfolios. Also if people have more number of stocks in their portfolio, may have to pay increased brokerage. But good and informative video.
For extra smart people. To book loss, don't take loss making postion intentionally. The taxes you will save will not be more than what you would have earned by investing your money in right stocks.
Yeah that's something you gotta add to calculations + if you do bod or sip in stocks that also complicates the things But speaking from my experience it still helps to save you taxes, but your portfolio size should be large
I am just amazed by you like… how you are so okay to show your personal investment, which is not even a small amount..😎 you have always been transparent to everything, that is the reason I trust you blindly 💓
@@vivekbora7974 nor should you take a stranger named Akansha seriously to respond and reveal your underlying reason to comment on the video as by revealing this you further reduce your probability of getting it liked by the uploader.
👌 You've addressed a crucial topic which every new investor should master before entering the market. I hadn't realized earlier the wisdom in selling losses for the benefits of loss harvesting. Also shifting your remaining capital to a faster up-trending stock can cover the loss, rather than relying on hope. In essence, it's important not to be emotional about losses and to find strategic ways to offset them. Additionally, it's almost mandatory to leverage the LTCG relaxation of 1 lakh before March 31st. If not done, you might not know when your gains will be in the multi-lac range in the future, but the opportunity to benefit from the 1 lakh relaxation will be lost, and you'll be unwillingly pay taxes on the entire amount. Just make sure you sell on very bullish day so that your chances of getting same price is maximized. Also little expenses on transaction will be offset. 👍 if you like the comment
This is just so crazy idea, I'm in Australia, we have to pay taxes on all gains, no min threshold like in India; however, I'm pretty sure I can use it to do some magic stuff. Thanks Ankur!
One thing i didn't understand that.... "Long term capital gain tax is the tax on selling stock that are to be hold for 1 year also for realising P&L for the ITR we have to file each year so , If this is the case then we have to sell & buy stock on 28th November each year such that we realise the P&L then, how we have to give long term capital gain tax ,in this case we have to give short term capital gain tax because even if we sell & buy stock immediately then for the next year we have to do it just next day of 28th November to realise complete portfolio
Bro, I hope you don't have only 1 stock in your portfolio. U will not only buy and sell the same stock. In this case, you have to transact one by one stocks. U have to sell A if you have A to E stocks and then in next year B or C. B will be long term. I hope you understand my point
1. You can sell any short term loss making stock and offset with both long and short term capital gains from any stock. But long term losses can only be offset against longterm gains and not on shortterm gains. 2. If you sell a loss making stock, you can buy it immediately from another Demat account or wait for a day to buy from the same Demat account. 3. Everytime you buy and sell, you are paying transaction fees, though they are small compared to your invested amount. 4. The idea of buying the same stock immediately after selling is to keep the same number of shares of that company. If the price falls further you can get more shares for the amount you got by selling. If the price goes up when you buy you will have to add extra cash to compensate the difference. But nothing to worry, because suppose you sold at -30% loss and next day the price went up by +10%, you still have the advantage of owning the shares 20% cheaper compared to your earlier purchase, plus you are getting tax benefits too. In this case since you're adding extra cash to get the same number of shares, you have calculate if the extra cash is less than the 20% difference and the tax gained.
@warikoo Excellent video like always. Just a small point for you to note that in US one has to wait for a month (or may be it is 2 months) before one can sell and buy stock for the purpose of tax harvesting. The alternate way is that one can buy first n then sell the next day (FIFO kicks in and does the needful); or sell a stock and then buy a similar stock from same basket.
One thing to remember that Ankur might have forgotten is, as you sell the loss-making stocks and instantly tried to buy those stocks then generally in Demat accounts we didn't get the same amount in that day but got it after the settlement period, so if you don't have already cash in Demat account then you can't instantly buy the stock and in 1-2 day the price might change.
@@lakshmi1994-d4t I think re-purchase has to be done before the financial year ends, right? But if you wait for long, the stock price will rise up more.
Hi Ankur, Could you please do a vedio applying this tax harvesting concept with respect to smallcase investment, as it has different charges (i.e., onetime charge if we exist smallcase for tax harvest etc.,). This will be helpful for those smallcase investors who are born from your vedios 😅. Thanks in advance 🤝
What if I bought a reliance share (for example) a year ago and again bought it maybe a few weeks ago. Now how will i differentiate in long term wala same share and short term wala share. And how will I know which one I am selling?
Hi Ankur, kya tax harvesting STCG tax pe applicable hoga for less than 1lac profit.. Like koi ipo share bechna at the time of listing. Also suggest kya ITR me profit dikhana hoga less than 1lac hai fir bhi
Hey Ankur if you are selling stocks within one year then how it will be considered as long term capital gain.. 3:45 as so explained... So how we can avail that 1 lakh for short term ( if sold within one year )...
One very important aspect that is missed in this video is that by doing this one won't save tax permanently, it's just that one would be able to defer the taxes.
Hey Ankur, Could you please guide us how can we save taxes while doing SIP , I have 10 Sip worth rupees 5k each which means 50 k in SIP which is basically I am investing due to unplanned expenses.. So in that case how can i save taxes..
Do this for mutual fund if you are going to continue SIP for more than a year not for stocks as it will unnesesarily increase brokarage cost n you will get benifit of less tax this year but will pay more tax next year as it willl take 1 more year for LTCG if you book STCG again then you pay extra 5 % tax as your stock prize wont wait for your LTCG to kick in as you are buying the same stock again meaning you want to hold on to it for profit. if it happens after 1 year then you will still pay 10% as we all aspire to make more than 1 lakh profit in every year for smaller folios in intial stages use it in MUTUAL FUNDS . for DIrect stock investing ingnore TAXES follow your rules for stock picking . I find your videos very helpful and just wanted to put my point as I have done this with stock and it was counter productive as the stock rate came back inless than 6 months . I paid more taxes . so I do this only for mutual fund in march month.
Hi, Ankur I have a question regarding your video. In the first scenario, you have shown the technique of selling the stock and buying it before it accumulate 1lkh capital gain. But according to your video, if we do that every year won't we fall under STCG?
Good part in theory, market does not gove 15% yoy...it will consolidate few years, fall few years and blast in 1 year to give 15% cagr eventually, you actually need to have much bigger capital to harvest tax every year and even that may not be possible every year.
Hello Wariko, I have a question, I'm not getting answer of this anywhere. If my income and capital gain both total are bellow 2.5 lakh less than taxable income then is it necessary to file incom tax return? I'm a student and I make around 1K per month which makes it much much less than taxable income. But I sell some of my investment within 1 year and I'm now confuse if I should file income tax return or not.
Thanku very much I have some shares in loss my Demate account bank told me to do this but I thought that more transection means more benifit to bank so I didnot listen to them .But now in this financial year i will do this
I could make out 2 BIG DISADVANTAGES of tax harvesting for LONG-TERM Value investors. Those are in dividends and wealth generation in long term. @ankurwarikoo sir, if u could know, please make a video on that so that people could be wealthy by not indulging in tax harvesting.
Let's make it simple. Suppose you buy a stock worth 200000. After 1 year suppose it has 15% gain and it is valued at 230000. Now you sell that stock and earn 230000. Then instantly buy that same stock by giving up 230000 rupees that you earned a while ago. Now your long term capital gain is 30000 on which 0 tax is applicable. In the next year suppose your 230000 is incremented by 15% again and now it becomes 264500. You now sell that stock for 264500 and buy it for 264500 after a while. Now your long term capital gain for 2nd year is 34500 on which no tax applicable . This process thus goes on
@@CamperSquad677 *Yes Bro in this para u r 100% right , i have understood this concept , BUT , IF I SELL THE STOCK OF ₹230000 ,THEN HOW CAN I BUY IT WITH A CURRENT MARKET PRIZE BECAUSE THE PRIZE /SHARE WILL BE HIGHER ?* THATS THE CONFUSION
@@OmGadhiya yeah, i am also thinking about it, maybe he meant that particular stock you sold or some other stocks with almost same annual returns. This method is effective as you need to understand that the returns are on the total money invested and not on the number of stocks. The money gets compunded, number of stocks is irrelevant in this calculation.
As a beginner who don't understand how bitcoin trade really work and you really want to make profit from it, I will advise you to first start working with a professional broker
Does Indian Stockmarket follow Wash sale rules ? If so then how can we purchase the same stock immediately after selling it ? Wash Sale Rule: The wash sale rule prohibits traders from claiming a tax deduction for a security sold in a wash sale. A wash sale occurs when you sell a security at a loss and then repurchase the same security, or one substantially identical, within 30 days before or after the sale. The disallowed loss is added to the cost basis of the repurchased security.
@warikoo hello sir I have a doubt you mentioned we need to sell the stocks of less than 1 lakh capital gains so that we don't get taxes and then buy the stock again.. but won't the price of the stocks be different from the day we bought it one year back basically won't it be costly i mean speaking from an averaging perspective it will cost us a lot to buy the same amount of stocks ??
You will get realised profit as well after selling the shares. You are actually utilising the initial invested amount + profit to buy back same shares to cut tax. After you buy back although it may not look good in your portfolio in terms of averaging but you have actually utilised your profit and reduced 1 year of counting on shares.
When you are selling you are selling at that moment's market price so you will be buying the same stocks or same MFs at the same price. That's why they said sell and buy immediately..
hey warikoo!! I want you to please make a video on "Things to do when you turn 18" I'll be turning 18 real soon and I would love to know how should I proceed. Please do include which credit card would be best for when you turn 18. :) thanks in advance. hope to see a video on this topic soon :)
My one friend tried this but selling and buying on same day will be treated as intraday transaction. Hence one day gap is needed. And the next day, prices flew high making losses and third brokerage cost and stt,.stamp duty will be higher
Sir ji, I hope it should not be sarcasm from your side. You are really great in making videos and motivating/inspiring/mentoring people. I follow your you tube channel and I don't even dare to make any video. Just shared my experience through comment. Pls excuse if you feel bad.
@@harshsodhani It's a fake comment just look at the channel's name ... Cross verify by clicking on name of channel and check the videos and number of subscribers. It's a fake account be careful with such idiots
Hello Ankur, As far I know, I think we shouldn't buy back the stocks we sold immediately for the purpose of tax harvesting as this would create some regulatory issues ( fine and all). We should atleast wait for a day to pass to buy them back. Posting what I heard somewhere, need to check with actual facts..
I agree we should wait at least one day. Because brokers report SFT transactions and send directly to IT to reflect in AIS report. Also they submit report to CAS. Now brokers typically calculate brokerage reports at the end of day. So to make sure this sell and buy are reflected separately , its better to buyback after 1 day Otherwise in worst case, because of netting at EOD you can have BBS instead of BSB (B = buy, S = sell, here the first B reflects the initial buy of stock). So BBS would mean just one shortterm transaction instead of BSB (where we want one desired long term transaction )
I knew this from other you tubers. What I wanted to know here is, if I am doing an SIP on smallcases then how would it be dealt with? Calculating 12 months window will get messy. Please advise.
Bech k same day kharido ge to intraday mai chala jayega Jo ki speculation income mai count hoga Agar apko sahi mai tax save karna ho to sell karne k 2nd day wapas buy karna hoga Please correct me if i am wrong
Good analysis guys, I have been making profit of $8,000 every week from eighteen different stocks which I have been trading from January till date, your analysis is good but trading this stock would increase your equity
As far as I am aware, loss in stocks cannot be carried forward. Loss from F&O may be you can carry forward the loss as it is treated as a business loss. Not entirely sure about this, so please check with your accountant.
Sir i have heard that when u sell and buy them on the same day it acts as an " intraday transaction ". So ideally we should buy the share after one or more days. Is it true???
S,T & L,T, Capital Gauns aur losses adjustment karne ke baad. Exlenses ke taur pe kaunse Deductions mil sakate hai. Pls explain thoughroli in separate vdo , if possible.
This method is bogas.. Let me tell you how.. If that stock is good. You will buy it again for 400 rs then if it goes 600 rs then you have to pay taxes on 200 rs rather than 100 rs..!!!
@@chetan_l it's real bogas bcuz anyway u have to pay tax ,if u set off now then in near future after having gain u will pay the tax on set off amount too
Excellent video with detailed explanation with examples.. there is a small challenge in this approach. If we sell today, we get settlement only after 3 days . By the time we get the money in our bank account, the price would have changed (gone up for buying again). What are your views..
Sir can you relate this thing with that of compounding. Can you make an excel sheet that with the help of not only investing but also tax harvesting how can we retire at age 35 or 40.. PLEASE
Hi Sir, I need to buy insurance but do I really need to think of going to DITTO, NAVI or other sources ?? It would be great if you could make a video on Ditto and Navi comparison I am just married and your videos are an inspiration the way one should plan a life Thank you for you contents I wish we had this education at least from college if not school life where awareness is more important than just a career. What's the point of investing if you one doesn't know taxation. Once again thank you for everything
Excellent video. Thanks for sharing, Ankur I have two questions. The first one is, for example. I buy ten shares of a stock every month. for 2021, I bought 120 shares, and the series continues for this year. Now I want to book my profit. How does Zerodha consider my long-term or short-term gain? Does it know which stocks I'm selling? Is the one-year consideration pro-rate based? The shares I bought in December 2021 will become long-term only after December 2022. again, the question is how Zerodha knows which shares I'm selling. Second one: is the above tax regime applies to NRI accounts? I have a Zerodha NRI trading account. Would you please help with a video specific to NRIs who trade/invest in India? Best Regards Anil Jangra
It was my first of your videos and found it very informative, easy to understand, crucial, ... I immediately liked it and subscribed your channel. Keep it up. God bless you...
If you book loss and buyback same day then it would be counted as intraday transaction of sell and buy . The original position remains unchanged. So to safe book loss the rebuy should happen following day
There is a 0.12% STT for every transaction, plus you also pay a brokerage. Suppose total is 0.2%. Total transacted amount per share = 2000. You pay Rs. 4 as transaction cost. Tax saved (assuming 20% slab) is Rs. 20. So, this cost is not insignificant.
Hello Ankur, Thanks for this very informative video. Few things to clarify here, 1. In the process of Tax Harvesting - is it necessary to buy the same stock/ MF again? or we an buy anyone that we wud prefer? and What is the logic if it is a 'yes'? 2. Is it correct that we should not buy the same stock the same day to ensure it is not considered as Intraday trading (applicable only for Shares and not MFs?). Wud appreciate you clarification as soon as psbl please. Thanks
1st method is something I use, like selling profit of 1lakh, but I do not like second method as to me it seems postponing the taxes, things you sell in loss will be considered bought on low price from time onwards so in future when you sell it in profit you have to pay extra money and exchange taxes are additional.
Correct me, but in my opinion Tax harvesting can works for LTCG ( exemption of 1L every year) but it won't work for STCG as the moment you but it again at Loss price then in some time when it came to Profit then your profit will be calculated based on that Lower price. And you will end up paying same amont of TAX for STCG.
Thank you so much for the financial education, This is Umesh Kumar, NRE- working in UAE since 2018, My wife / kids are Indian resident, i am frequent traveler to India to meet them. My wife is work as tution teacher at home and eared 15k monthly 1. Need to know taxation on NRE Mutual fund? 2. Is the TDS refundable during ITR filing? 3. Can my wife invest in mutual fund / stock, if I give money to her as a gift or monthly basis? 4. Any club taxation will applicable in the case 5. Any other useful information or guidance
Have you considered 1% exit load, that exists on most equity mutual funds. In first scenario, we end up incurring about 5000 rupees every time we sell. Net, we end up losing more than 50,000 rupees at the end of 5 years. Am I correct ?
There is an issue here… if you sell and buy at same instant then it is considered as intraday trade. So better to sell today at 3:29pm and then buy it next day around same price. In that case it will be counted for tax harvesting
Excellent video with tips Pls give example on how to do this on a larger amount in mutual funds pls I understand that I can’t do anything on my 10 year portfolio but ongoing investment s how to plan
Check out Ditto insurance here: bit.ly/3v8D3Al
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Subscribe to my all new Shorts channel, warikoo Shorts, and learn personal finance and career tips in less than 60 seconds! bit.ly/AWSHORT
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Get yours NOW: ankurwarikoo.com/doepicshit
But the main challenge here is, we do not remember which stock we bought when exactly.
F & O ke Taxes ka details video
@Rajashekhar Nari you can find tour holding details whether or not it is long term or not. First see it then sell
Few Important Points to Note:
1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading.
2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios)
3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
Hello sir
Can we save tax on options ,swing ,intraday trading
Few Important Points to Note:
1. In case of stocks, when he said "Buy back Instantly", he meant buy back after one day. Else the transaction will be considered as intraday trading.
2. Always calculate broker/SEBI/DP/other charges on broker calculators to know how much you will spend on doing these activities.(Important for people with small portfolios)
3. Do this activity in relatively less volatile times and preferably when there is no trading holiday so as to keep the price as same as possible during your sell and buy transactions. (I did this on less volatile day, sold at 3PM on Monday and bought at 9:15AM on Tuesday)
So brother, while filing the IT return how did you show it? I have never filled IT return before but this will be my first time. Can you please tell how to show the net result of this tax harvesting activity
Can you clarify when we have realised a loss why we need to buy that stock again for this tax harvesting concept to take place ? What if we just realised the loss and choose to invest somewhere better?
Thanks Rohit
bhai jo shares aap kharid k same day bechoge to intraday kehlayega. Agar aap already owned shares ko sell karke fir buy karenge to intraday nhi hoga
Instantly buying back will not considered as intraday, because the delivery of buying Is different for intraday (generally called as position) and holding (u can sell only next day)
Excellent content Ankur.
Now, I feel a bit relieved that my loss making stocks can have some utilities too 🤣
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
Ankur, I think u missed one important point in this video..
1. In second year onwards, when you are sellling and purchasing again the assets, the prices of stock will change by current date price. Hence, the exact gain for each year will change also..
Good one sir. Thanks for providing this idea to share with my audience as well 👍🙂
One of the most informative videos uploaded on the channel. Loved it!
One important thing missed here is.... what if the value of stocks is high or low while selling or buying the same stock....entire calculation changes,so think about that as well
yeah thts my point...bechne ke baad dobara buy krne pe profit thode hi hoga...fir ruko 5 saal...
i guess no because let's say even if you're at a loss at the end of year, you can still buy the same number of stocks with that price and as you invested you are bullish on the stock in long term, which means you expect profit after 5 years or something, you would still earn as much profit as you should after 5 years, plus saving taxes on that, I ain't experienced in the market as of now, so correct me if i am wrong
@@namanableyou are selling and buying the same time.there is no profit or loss there.but you can save on taxea
We need to watch the broker/SEBI/DP/transaction charges while selling and buying immediately. May work for people with small portfolio were they can offset until 1 lakh gain. But may not be possible for bigger portfolios. Also if people have more number of stocks in their portfolio, may have to pay increased brokerage. But good and informative video.
For extra smart people.
To book loss, don't take loss making postion intentionally. The taxes you will save will not be more than what you would have earned by investing your money in right stocks.
True
While calculating tax difference there should be one consideration for brokarage charges as we are selling and buying stocks to keep tax low.
also the securities transaction tax
Yeah that's something you gotta add to calculations + if you do bod or sip in stocks that also complicates the things
But speaking from my experience it still helps to save you taxes, but your portfolio size should be large
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Ye ameer hain aur doosron ko hone nhee denge
Inka maheene ka kharcha 3 lakh hai
Hamari income hogi 3 lakh wo bhi annually
This is absolutely gold!
Sorry I'm not sharing this with anyone...
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No video explains tax harvesting such thoroughly...They only show what it is but doesn't dig deeper into it... The magic of excel sheet ❤️
Sir I love this video this is the best video of tax saving I've ever seen this is a really incredible video
Superbly explained Tax Harvesting.
Sir Aap ne tu "Zor Zor Bolke sab ko scheme bata diye " 😁😂😂😂
Mai job aur trading karta hu kounsa ITR Form bharna chahiye? Ek demo b dikhayiye sir
I am just amazed by you like… how you are so okay to show your personal investment, which is not even a small amount..😎 you have always been transparent to everything, that is the reason I trust you blindly 💓
You should not trust blindly though
@@s0ulweaver neither, you should believe any random Vivek buttering and being nice to a TH-camr. He might be doing this for a ♥️
@@vivekbora7974 nor should you take a stranger named Akansha seriously to respond and reveal your underlying reason to comment on the video as by revealing this you further reduce your probability of getting it liked by the uploader.
@@s0ulweaver I have ample amount of heart by Ankur, the only thing lacking in my life was a reply by a stranger named Akansha. Today I got it though.
@@vivekbora7974 lol that you did
👌 You've addressed a crucial topic which every new investor should master before entering the market. I hadn't realized earlier the wisdom in selling losses for the benefits of loss harvesting. Also shifting your remaining capital to a faster up-trending stock can cover the loss, rather than relying on hope. In essence, it's important not to be emotional about losses and to find strategic ways to offset them. Additionally, it's almost mandatory to leverage the LTCG relaxation of 1 lakh before March 31st. If not done, you might not know when your gains will be in the multi-lac range in the future, but the opportunity to benefit from the 1 lakh relaxation will be lost, and you'll be unwillingly pay taxes on the entire amount. Just make sure you sell on very bullish day so that your chances of getting same price is maximized. Also little expenses on transaction will be offset. 👍 if you like the comment
Seemed counterintuitive at first but such a useful approach. Thanks Ankur! 😅👍
That's actually very clever Ankur. Thanks for the advice.
This is just so crazy idea, I'm in Australia, we have to pay taxes on all gains, no min threshold like in India; however, I'm pretty sure I can use it to do some magic stuff. Thanks Ankur!
A video on ITR filing related to equity stocks is appreciated ☺️
Ankur Bhai .. this the best one you have given us so far. 🙏
One thing i didn't understand that....
"Long term capital gain tax is the tax on selling stock that are to be hold for 1 year also for realising P&L for the ITR we have to file each year so ,
If this is the case then we have to sell & buy stock on 28th November each year such that we realise the P&L then, how we have to give long term capital gain tax ,in this case we have to give short term capital gain tax because even if we sell & buy stock immediately then for the next year we have to do it just next day of 28th November to realise complete portfolio
Bro, I hope you don't have only 1 stock in your portfolio. U will not only buy and sell the same stock. In this case, you have to transact one by one stocks. U have to sell A if you have A to E stocks and then in next year B or C. B will be long term. I hope you understand my point
@@kapilagrawal8338 i have similar questions
you do this one stock for once and then you dont for entire financial year ?
1. You can sell any short term loss making stock and offset with both long and short term capital gains from any stock. But long term losses can only be offset against longterm gains and not on shortterm gains.
2. If you sell a loss making stock, you can buy it immediately from another Demat account or wait for a day to buy from the same Demat account.
3. Everytime you buy and sell, you are paying transaction fees, though they are small compared to your invested amount.
4. The idea of buying the same stock immediately after selling is to keep the same number of shares of that company. If the price falls further you can get more shares for the amount you got by selling. If the price goes up when you buy you will have to add extra cash to compensate the difference. But nothing to worry, because suppose you sold at -30% loss and next day the price went up by +10%, you still have the advantage of owning the shares 20% cheaper compared to your earlier purchase, plus you are getting tax benefits too. In this case since you're adding extra cash to get the same number of shares, you have calculate if the extra cash is less than the 20% difference and the tax gained.
@warikoo Excellent video like always. Just a small point for you to note that in US one has to wait for a month (or may be it is 2 months) before one can sell and buy stock for the purpose of tax harvesting. The alternate way is that one can buy first n then sell the next day (FIFO kicks in and does the needful); or sell a stock and then buy a similar stock from same basket.
इसमें dilevery छोडनी पड़ेगी फिर Next day Buy करने पर ऐसा होगा नहीं तो sepculation में चला जायेगा क्या ऐसा ठीक है ?
One thing to remember that Ankur might have forgotten is, as you sell the loss-making stocks and instantly tried to buy those stocks then generally in Demat accounts we didn't get the same amount in that day but got it after the settlement period, so if you don't have already cash in Demat account then you can't instantly buy the stock and in 1-2 day the price might change.
Bro.. You get the 80% amount instantly and the rest amount credit after T+2 days.. So you can buy 80% stocks instantly...
You can buy sell on same day. Problem is not money here. It will be considered as intraday. You need to buy next day at any cost.
@@lakshmi1994-d4t I think re-purchase has to be done before the financial year ends, right? But if you wait for long, the stock price will rise up more.
Very very nice Ankur Sir 👌
This is the best video I've seen on internet today
Hi Ankur,
Could you please do a vedio applying this tax harvesting concept with respect to smallcase investment, as it has different charges (i.e., onetime charge if we exist smallcase for tax harvest etc.,).
This will be helpful for those smallcase investors who are born from your vedios 😅.
Thanks in advance 🤝
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
Sir you just explained a complex thing in the easiest way. Loved it ❤
What if I bought a reliance share (for example) a year ago and again bought it maybe a few weeks ago. Now how will i differentiate in long term wala same share and short term wala share. And how will I know which one I am selling?
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
First in first out. Which means stocks bought first will be considered while selling
Hi Ankur, kya tax harvesting STCG tax pe applicable hoga for less than 1lac profit.. Like koi ipo share bechna at the time of listing. Also suggest kya ITR me profit dikhana hoga less than 1lac hai fir bhi
Hey Ankur if you are selling stocks within one year then how it will be considered as long term capital gain.. 3:45 as so explained... So how we can avail that 1 lakh for short term ( if sold within one year )...
so sell after one year
it's amazing, I learnt new today from this video thanks man 🙌🙌
One very important aspect that is missed in this video is that by doing this one won't save tax permanently, it's just that one would be able to defer the taxes.
No. You actually do end up saving tax.
That’s not true. You actually save taxes
@@warikoo how?
@@s0ulweaver how?
@@warikoo if you sell shares and buyback on same day u also get penalty for doing it! so it better to buy after 2 days !
Thank you ankur sir....today i learned something new ❤️❤️❤️
@Warikoo㊉①⑤⑦⓪③⑥②⑥⑤③⑧ chal be chutiye apne baap ko scam kar 😂
Hey Ankur, Could you please guide us how can we save taxes while doing SIP , I have 10 Sip worth rupees 5k each which means 50 k in SIP which is basically I am investing due to unplanned expenses.. So in that case how can i save taxes..
I think tax harvesting will affect the compounding in case of SIP. Please help, @warikoo
Best content. Thanks for sharing the knowledge on tax harvesting.
Make a video on... How inflation is a good thing for economy?
Pagal - Wagal Toh Nahi Ho Gayi Ho
Are u mad ?????
@@shubham82 these are bjp IT bots
Who is defending govt failure so that they can win in 2024 election
@@shubham82 do some research.. Before making any statement
@@bhavyatrivediofficial hike in petrol price is also good for india 😂😂😡
Golden info..even after 2 years
For mutual funds, do we need to wait till settlement after selling before buying it again? Or can we do it even when it's under process?
Do this for mutual fund if you are going to continue SIP for more than a year not for stocks as it will unnesesarily increase brokarage cost n you will get benifit of less tax this year but will pay more tax next year as it willl take 1 more year for LTCG if you book STCG again then you pay extra 5 % tax as your stock prize wont wait for your LTCG to kick in as you are buying the same stock again meaning you want to hold on to it for profit. if it happens after 1 year then you will still pay 10% as we all aspire to make more than 1 lakh profit in every year for smaller folios in intial stages use it in MUTUAL FUNDS . for DIrect stock investing ingnore TAXES follow your rules for stock picking .
I find your videos very helpful and just wanted to put my point as I have done this with stock and it was counter productive as the stock rate came back inless than 6 months . I paid more taxes . so I do this only for mutual fund in march month.
I am thinking of closing my demat account. Na rahega bass na rahegi basri
Excellent ❤
😂😂
@@SaurabhSingh-om7xm 😆
Same hi main soch rahi ho
APKI SOCH KA ACHAR DALNA HA, TUM BAAD MA JAO BABA
Very good and thanks u bhai
Hi, Ankur I have a question regarding your video. In the first scenario, you have shown the technique of selling the stock and buying it before it accumulate 1lkh capital gain. But according to your video, if we do that every year won't we fall under STCG?
After completion of 1 year on that stock / sip
Is 1 lakh profit is tax free in short term capital gain
Good part in theory, market does not gove 15% yoy...it will consolidate few years, fall few years and blast in 1 year to give 15% cagr eventually, you actually need to have much bigger capital to harvest tax every year and even that may not be possible every year.
Sir, how does tax harvesting work if we are on sip on mutual funds and we are keeping it for more than 30 years or so?
Very nice information. Good way to kick out loosing stocks. Thank You. Thank You. Thank You.
Hello Wariko, I have a question, I'm not getting answer of this anywhere.
If my income and capital gain both total are bellow 2.5 lakh less than taxable income then is it necessary to file incom tax return?
I'm a student and I make around 1K per month which makes it much much less than taxable income. But I sell some of my investment within 1 year and I'm now confuse if I should file income tax return or not.
@Nirmalya Sarkar If your total income is less than 2.5 lakhs then you are not mandated to file your IT returns.
@@ashwinnair5858 thankyou so much for the information, it is immensely helpful for me.
Thanku very much
I have some shares in loss my Demate account bank told me to do this but I thought that more transection means more benifit to bank so I didnot listen to them .But now in this financial year i will do this
Thanks for watching, For more info and advice on stock and investment!!
Participate in the ongoing new investment plan🇮🇳🇱🇷 🇧🇩 🌎
I could make out 2 BIG DISADVANTAGES of tax harvesting for LONG-TERM Value investors. Those are in dividends and wealth generation in long term. @ankurwarikoo sir, if u could know, please make a video on that so that people could be wealthy by not indulging in tax harvesting.
Wow sir your instructions are so great
Didn't understood, if I sale my stocks worth 175000 and then immediately buy it at the current prize/ share then how it would be effective ?
Let's make it simple. Suppose you buy a stock worth 200000. After 1 year suppose it has 15% gain and it is valued at 230000. Now you sell that stock and earn 230000. Then instantly buy that same stock by giving up 230000 rupees that you earned a while ago. Now your long term capital gain is 30000 on which 0 tax is applicable. In the next year suppose your 230000 is incremented by 15% again and now it becomes 264500. You now sell that stock for 264500 and buy it for 264500 after a while. Now your long term capital gain for 2nd year is 34500 on which no tax applicable . This process thus goes on
@@CamperSquad677 *Yes Bro in this para u r 100% right , i have understood this concept , BUT , IF I SELL THE STOCK OF ₹230000 ,THEN HOW CAN I BUY IT WITH A CURRENT MARKET PRIZE BECAUSE THE PRIZE /SHARE WILL BE HIGHER ?* THATS THE CONFUSION
@@OmGadhiya yeah, i am also thinking about it, maybe he meant that particular stock you sold or some other stocks with almost same annual returns. This method is effective as you need to understand that the returns are on the total money invested and not on the number of stocks. The money gets compunded, number of stocks is irrelevant in this calculation.
@@CamperSquad677 short term k lie 1 lac wali chhut h ya nhi please bataye 🙏
Very neatly explained and your helping many salaried class to overcome burden of tax thru stock/MF investing!
Hello what is the best way to get started with bitcoin investment or Forex trade cos I have been making my personal research for a while now
As a beginner who don't understand how bitcoin trade really work and you really want to make profit from it, I will advise you to first start working with a professional broker
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Does Indian Stockmarket follow Wash sale rules ? If so then how can we purchase the same stock immediately after selling it ?
Wash Sale Rule: The wash sale rule prohibits traders from claiming a tax deduction for a security sold in a wash sale. A wash sale occurs when you sell a security at a loss and then repurchase the same security, or one substantially identical, within 30 days before or after the sale. The disallowed loss is added to the cost basis of the repurchased security.
@warikoo hello sir I have a doubt you mentioned we need to sell the stocks of less than 1 lakh capital gains so that we don't get taxes and then buy the stock again.. but won't the price of the stocks be different from the day we bought it one year back basically won't it be costly i mean speaking from an averaging perspective it will cost us a lot to buy the same amount of stocks ??
You will get realised profit as well after selling the shares. You are actually utilising the initial invested amount + profit to buy back same shares to cut tax. After you buy back although it may not look good in your portfolio in terms of averaging but you have actually utilised your profit and reduced 1 year of counting on shares.
When you are selling you are selling at that moment's market price so you will be buying the same stocks or same MFs at the same price. That's why they said sell and buy immediately..
hey warikoo!!
I want you to please make a video on "Things to do when you turn 18"
I'll be turning 18 real soon and I would love to know how should I proceed.
Please do include which credit card would be best for when you turn 18. :)
thanks in advance. hope to see a video on this topic soon :)
My one friend tried this but selling and buying on same day will be treated as intraday transaction. Hence one day gap is needed. And the next day, prices flew high making losses and third brokerage cost and stt,.stamp duty will be higher
Sir ji, I hope it should not be sarcasm from your side. You are really great in making videos and motivating/inspiring/mentoring people. I follow your you tube channel and I don't even dare to make any video. Just shared my experience through comment. Pls excuse if you feel bad.
Fake reply scammer
@@harshsodhani It's a fake comment just look at the channel's name ... Cross verify by clicking on name of channel and check the videos and number of subscribers. It's a fake account be careful with such idiots
watching this video about 1 year later but still the knowledge gained by this video
rocks
Hello Ankur,
As far I know, I think we shouldn't buy back the stocks we sold immediately for the purpose of tax harvesting as this would create some regulatory issues ( fine and all). We should atleast wait for a day to pass to buy them back.
Posting what I heard somewhere, need to check with actual facts..
I agree we should wait at least one day. Because brokers report SFT transactions and send directly to IT to reflect in AIS report. Also they submit report to CAS.
Now brokers typically calculate brokerage reports at the end of day. So to make sure this sell and buy are reflected separately , its better to buyback after 1 day
Otherwise in worst case, because of netting at EOD you can have BBS instead of BSB (B = buy, S = sell, here the first B reflects the initial buy of stock). So BBS would mean just one shortterm transaction instead of BSB (where we want one desired long term transaction )
very useful concept of tax harvesting... very well explained sir
I knew this from other you tubers. What I wanted to know here is, if I am doing an SIP on smallcases then how would it be dealt with? Calculating 12 months window will get messy. Please advise.
It to be monitored with number of units
Bech k same day kharido ge to intraday mai chala jayega
Jo ki speculation income mai count hoga
Agar apko sahi mai tax save karna ho to sell karne k 2nd day wapas buy karna hoga
Please correct me if i am wrong
Good analysis guys, I have been making profit of $8,000 every week from eighteen different stocks which I have been trading from January till date, your analysis is good but trading this stock would increase your equity
How to get to you
Do you have a handle
I haven't been doing too well on stock trading
I need more insight on it
You can reach me through my mail
As far as I am aware, loss in stocks cannot be carried forward.
Loss from F&O may be you can carry forward the loss as it is treated as a business loss.
Not entirely sure about this, so please check with your accountant.
Sir i have heard that when u sell and buy them on the same day it acts as an " intraday transaction ". So ideally we should buy the share after one or more days. Is it true???
Your correct✅
Correct
if you sell shares and buyback on same day u also get penalty for doing it! so it better to buy after 2 days !
S,T & L,T, Capital Gauns aur losses adjustment karne ke baad. Exlenses ke taur pe kaunse Deductions mil sakate hai. Pls explain thoughroli in separate vdo , if possible.
This method is bogas.. Let me tell you how.. If that stock is good. You will buy it again for 400 rs then if it goes 600 rs then you have to pay taxes on 200 rs rather than 100 rs..!!!
Bro your 200 rs gain will offset by 100 rs loss and you have to pay tax on 100
@@vanshgirdhar9456lekin woh already setoff kar chuka hoga tab😂,sahi point pakda h yeh
Well, what about loss carry forward? That will help in offsetting the higher gains (say, eight years later), right?
@@chetan_l it's real bogas bcuz anyway u have to pay tax ,if u set off now then in near future after having gain u will pay the tax on set off amount too
What about the brokerage and other charges which will be added in every transaction
Excellent video with detailed explanation with examples.. there is a small challenge in this approach. If we sell today, we get settlement only after 3 days . By the time we get the money in our bank account, the price would have changed (gone up for buying again). What are your views..
Sir can you relate this thing with that of compounding. Can you make an excel sheet that with the help of not only investing but also tax harvesting how can we retire at age 35 or 40.. PLEASE
Hi Sir,
I need to buy insurance but do I really need to think of going to DITTO, NAVI or other sources ??
It would be great if you could make a video on Ditto and Navi comparison
I am just married and your videos are an inspiration the way one should plan a life
Thank you for you contents
I wish we had this education at least from college if not school life where awareness is more important than just a career.
What's the point of investing if you one doesn't know taxation.
Once again thank you for everything
Excellent video. Thanks for sharing, Ankur
I have two questions.
The first one is, for example. I buy ten shares of a stock every month. for 2021, I bought 120 shares, and the series continues for this year. Now I want to book my profit. How does Zerodha consider my long-term or short-term gain? Does it know which stocks I'm selling? Is the one-year consideration pro-rate based? The shares I bought in December 2021 will become long-term only after December 2022. again, the question is how Zerodha knows which shares I'm selling.
Second one: is the above tax regime applies to NRI accounts?
I have a Zerodha NRI trading account. Would you please help with a video specific to NRIs who trade/invest in India?
Best Regards
Anil Jangra
😂😂5k savetax and loose 15k
How?
How
For big investment @@soumit.
Its really interesting to know about Tax Harvesting
Would appreciate if same video you can make on US Stock market to save taxes.
It was my first of your videos and found it very informative, easy to understand, crucial, ... I immediately liked it and subscribed your channel. Keep it up. God bless you...
👆👆
Feedback appreciated♥️.
kindly reach out to the contact above for insights, consultations and investments💼
If you book loss and buyback same day then it would be counted as intraday transaction of sell and buy . The original position remains unchanged. So to safe book loss the rebuy should happen following day
There is a 0.12% STT for every transaction, plus you also pay a brokerage. Suppose total is 0.2%. Total transacted amount per share = 2000. You pay Rs. 4 as transaction cost. Tax saved (assuming 20% slab) is Rs. 20. So, this cost is not insignificant.
Hello Ankur, Thanks for this very informative video. Few things to clarify here, 1. In the process of Tax Harvesting - is it necessary to buy the same stock/ MF again? or we an buy anyone that we wud prefer? and What is the logic if it is a 'yes'? 2. Is it correct that we should not buy the same stock the same day to ensure it is not considered as Intraday trading (applicable only for Shares and not MFs?). Wud appreciate you clarification as soon as psbl please. Thanks
awesome sir...its really useful video... thanks u so much
Good video. Relevant after one year too.
Please clear is it compulsory to buy the same stock or can we buy other stock on next day
if you know what is short and long term tax... start video from 5:50
Really thankful to you sir.. i dont know about tax harvesting .... Really helpful 🙏🏻....... Thanks again ... Nicest student of yours ☺️😁
As Always Valueable Content 💥
1st method is something I use, like selling profit of 1lakh, but I do not like second method as to me it seems postponing the taxes, things you sell in loss will be considered bought on low price from time onwards so in future when you sell it in profit you have to pay extra money and exchange taxes are additional.
Correct me, but in my opinion Tax harvesting can works for LTCG ( exemption of 1L every year) but it won't work for STCG as the moment you but it again at Loss price then in some time when it came to Profit then your profit will be calculated based on that Lower price. And you will end up paying same amont of TAX for STCG.
Thank you so much for the financial education, This is Umesh Kumar, NRE- working in UAE since 2018, My wife / kids are Indian resident, i am frequent traveler to India to meet them. My wife is work as tution teacher at home and eared 15k monthly
1. Need to know taxation on NRE Mutual fund?
2. Is the TDS refundable during ITR filing?
3. Can my wife invest in mutual fund / stock, if I give money to her as a gift or monthly basis?
4. Any club taxation will applicable in the case
5. Any other useful information or guidance
Very clear and easily understandable guidance. Thanks. 😊
Thanks. Good explanation.
Very clear talk.
I am watching this now. Can you pls make anew video on tax harvesting as per the new IT rules.
Have you considered 1% exit load, that exists on most equity mutual funds. In first scenario, we end up incurring about 5000 rupees every time we sell. Net, we end up losing more than 50,000 rupees at the end of 5 years. Am I correct ?
Please Make A Video On Which ITR to File on STOCK MARKET INCOME
Your excel skill is good
There is an issue here… if you sell and buy at same instant then it is considered as intraday trade. So better to sell today at 3:29pm and then buy it next day around same price. In that case it will be counted for tax harvesting
Excellent video with tips
Pls give example on how to do this on a larger amount in mutual funds pls
I understand that I can’t do anything on my 10 year portfolio but ongoing investment s how to plan
Good info for small investers. 🎉
very clear n crisp explaination...