Realized LTCG plus unrealized STCL but Zerodha says no tax loss harvesting

Zerodha
1

I have some realized long term capital gains (LTCG). I have a stock that’s under a net short term capital loss (STCL), but so far that loss is unrealized. The tax loss harvesting report says there’s no tax loss harvesting opportunity. I don’t understand why this is so, since this unrealized STCL can be offset against LTCG after realization and is an opportunity to do so.

Can someone explain what I’m not understanding here or if there is a logical issue with this Zerodha report? Does the report only match LTCG with unrealized LTCL and STCG with unrealized STCL? Thank you.

2

Hey, STCL can be used to offset LTCG, but this is done on a FIFO basis. If you have shares that have been held for over a year and are in profit, they won’t be included in the STCL computation even if you have some quantity of the same stock under short term. If this does not hold true in your case, you can create a ticket here so that we can guide you further.