How to do tax loss harvesting in this volatile markets. If I sell today and buy tomorrow I might loose 1-3% since sell and buy on same day will be considered as intraday. Is there an effective way to not loose out on the difference.
And also how is this considered in case on MF. is it also considered intraday. If I place sell and buy orders on the same day.
I think despite redeeming before cut off time, it is possible that redemption date could be different, and redemption date given by the AMC matters not when we redeemed.
I did redeem equity MF many times in the past, but I don’t have the dates of my redemption request and redemption date given my the AMC, so cannot say for sure.
I use coin for MFs and I dont think it has ever been different than the expected redemption date. I doubt it will be any different in case of dealing with direct AMCs as well. But waiting to hear from how its considered from either quicko or someone from zerodha with more knowledge
Hi @ranton137,
Tax Loss Harvesting is selling the current position and taking a fresh one. Thus, in your case if you first sell off your holdings and then take the new one it is not considered as short sell or Intraday. Tax loss harvesting can be done in similar way for Mutual funds too.
Hope this helps!
I think you misunderstood the issue. May be the name used might be miss leading. I was looking to save tax by leveraging the 1L LTCG gains. I have some scrips that are in profit and below the LTCG limit of 1L. I want to sell then realize the profit again buy it back next day. I might loose 2-3% between days in this markets. I was looking is there a way to escape that.
Also how is it considered in case of MF. to leverage 1L LTCG gains. to not loose the 2-3% can I place buy and sell at the same day and different units gets allotted or are they the same.
If you are holding shares in excess of its future lot size you can sell in cash and buy in future.
If it’s a stock from cash segment, then you need to have 2 demat accounts. It could be self or your spouse. Contra trade in the other account.
If I sell some stocks from my Zerodha account and then buy same stocks at same price in my another account with some other broker, will there be some issue of self-trade or something as both the demat accounts will have the same PAN?
Nah. Not really. We can take contrary views actually. Practically speaking if AO is so damn smart to track so much then he can argue that it’s self trade. But here he is speaking about taking 1L exemption. The AO is really that jobless to sit and track everything? Now whether it qualifies for tax planning or tax evasion is another question.
Well. Now I think I shouldn’t have suggested this on public platform 
Hi @ranton137,
Hey,
There is no way you can escape the price difference between buy value and sell value.
Yes you can sell the units of mutual fund and buy it on same day to get benefit of 1 lakh. When you sell your holdings first and then buy new position it does not result in Intraday.
Hope this helps!
but in MF buy and sell happens on the same time i.e. same day.
Hi @ranton137,
Tax loss harvesting basically means selling the units that you already hold and then buying the same to keep the portfolio unchanged. This transaction does not result in Intraday.
Hope this helps!
If you sell your existing holdings, lets say share X , it was originally bought at Rs. 120 (100 qty) in the last 1 year (so eligible for STCG) , and now I am selling at price of Rs. 100 (loss of Rs 20X100=Rs. 2000) and buying the share on same day for the price of Rs. 100, it does not show on Zerodha that the Loss realized is Rs. 2000 - it shows as zero! Which means same day sell of holdings and buyback on same day at same price as avg sell price cannot really be used for tax loss harvesting right? It must be bought on next day? or day after?
Does tax loss harvesting consider as tax evasion ?
@Private It is not tax evasion per se. It can be termed as tax avoidance in my opinion rather than tax planning.
No… This is just reducing the tax liability!