I have some holding and want to do tax loss harvesting. But the confusion is if I sell my holding in cnc and but it same day will it be considered as intraday transaction? Technically I think that it should not be treated as intraday as I already have my holding in my Demat and I have the option to sell them as delivery right. Kindly correct me.
If you sell from your holdings and then place a fresh buy order for the same stock it won’t be counted as intraday even though the trade has taken place the same day.
If you just sell the stock (given that you have sufficient cash balance) and then buy it once again it will be called as short selling and considered as intraday trade.
Since you are selling from your holding to reap the benefit of tax loss harvesting it shouldn’t be counted as intraday. If by some chance zerodha is showing this as intraday then we have a problem.
@ShubhS9 Need clarity on this whether there is any problem in the system regarding this transaction.
As far as I know, this is not true. If the two transactions (sell, and then buy the same or larger number of shares) take place on the same day, it will be considered as intra-day and will not affect your demat holdings. So, such transactions won’t help you with tax loss harvesting.
What if I sell my holding and then buy them back on the same day but a few less quantity. Say I sell 100 shares of A and then buy 99 shares of A. Will the selling of 99 share be considered as intraday and sell of 1 share as CNC?
Yes.
Going back to some of the old threads Zerodha considers this transaction as Intraday
So you should sell today and buy T+1 Day or T+2 Day the stock to make system think that its a delivery transaction.
Selling shares from holdings and buying back on the same day will be considered as an intraday trade. For tax-loss harvesting, the shares have to move out of the demat account through a delivery sell transaction and can be subsequently purchased the next day.
Hi Shubh @ShubhS9
When I sell stock from my holdings on T day, the demat account gets debited on T+2 day, right?
So I need to buy again on T+3 day, right?
No. With new system many stocks get settled on T+1 Day basis & some not. Even if you buy it the next day its going to go out your portfolio so your holding is sold and new stock is bought.
Hi @ShubhS9 If i want to book LTCG and sell on 31 Mar22(thr) as per t+2 funds come to me on 4 Apr 22(Mon)
Will ltcg be taken in fy21-22 based on date of transactions(T) or next financial year based on realisation of funds(T+2)
Thanks
So tax loss.harvesting carries risk of price movement as one can’t buy on the same day.If by chance market moves up the next day one will end up making loss in comparison to the tax he was trying to save.
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Yes. Correct. Also you have to pay STT, DP Charges and other related charges.
@ShubhS9
Can I do tax loss harvesting on 30th and 31st March against my STCL. Or it had to be done before 29th March.
Thanks
If I sell stocks with loss in my holding on 31st March and buy it back on April 1st (considering I am bullish on that stock in the long run), will it work for tax loss harvesting?
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You’re selling shares on 31st March, the transaction will be in this FY only, not the next.
You can, as the transaction will be in this FY only.
Thanks for clarifying
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