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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)
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
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.
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
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
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.
Can anyone explain me what was profit here, I have booked profit after 1 year & invested that profit again After 2 years I have booked profit again & invested again So on..... Conclusion : My tax amount is saved, but what is my total profit at the end... 1.31175L? Is it not better to sell all shares at the end of 5years & get 5.75L profit & give some amount to tax?
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..
Sir ..One question. If I have invested rs. 1000 .and profit is Rs. 2000 . And after 1 year I remove investment of Rs. 1000 will.this be considered as gain or nil and I have removed only my investment
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.
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
Your ads are popping each and every time and you should realise how much you bother individuals.... I know you are selling courses and you must be spending a lot on ads.... Your ads are fucking up my peace of mind.....
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.
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
Sir I sold my old flat @ 20000/= in Nov'22. Before that in May 22 purchased a new flat @ Rs. 65 lakh by taking loan from bank of Rs 40 Lakh. The entire amount of Rs. 20Lakh I repaid to the bank. Am I eligible for exemption under 54 of IT Act from capital gain tax?
But when we realised the loss and buy back but now our buying price is low and again and stock take reverse and price go up at that time we are in profit for the new trade so again we have to pay some tax other wise we have sold it under 1 lack profit so can you give suggestions for this problem
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?
What is the best way of keeping track of all investments, Indian stock investments with multiple brokers, us stocks, direct mutual funds, other mutual fund investments etc I sincerely would like the feedback from Ankur and all friends here ...
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.
I have question for warikoo sir what if at 5th year i sold my stocks at small small amount less than 1 lakh capital gain each than i have to pay tax ? 9.58
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
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 )...
Let i bought a share X @100 ,after fee days it come @50 i booked my -50 (realised loss) Than i book my rs 50 profit on Y share .So my tax on Y share is 0.but if my X share give me profit and goes 50 to 150 and i book my 100 profite on it charge me same tax 😂
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 🤝
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 earned 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
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.
@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.
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?
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 ?
@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..
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.
Am a new investor and I have a doubt, when you say "you have to pay tax" is this you mean to say like I have to pay tax separately or it will be deducted and adjusted with the amount I get back after I sell a stock in my broker account balance. Plse do reply on this!..
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
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
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
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
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 )
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.
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.
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???
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
Sir just my bit. If you sell and buy immediately, that will become speculative and taxed differently like Intraday trade. Rather wait 2 days and buy again to make the transaction totally delivery based. Please correct me if I am wrong
Sir need your help... Mera stock future option mai is sal mai loss 4 lakh Is sal mai stock buying selling (STCG) mai pft 4 lakh . Then mughe 15% stcg tax Dena hoga ?
20 हजार रुपये का टॅक्स बचाने के लिये, 31 हजार रुपये का घाटा करके शेअर बेचे ? कितना टॅक्स save हुवा ? 4 या साडेचार हजार रुपये. और brokarage? 3 बार लगेगा. लगभग 2 हजार तक. तो घाटेमे शेअर बेचने से अच्छा है, partialy प्रॉफिट बुक किया जाए. 😊
Good content, but many things missing.. in ur video 8:34 min u explain that once we finish 12 month of investment we need to sold that all and reinvestment as tax harvesting and buy again same time but.....but..... 12month ago u buy that stock or mf Nav. in chipper price and that's why after 12 month u sold bcoz it's give u higer return so how come u sold the stock or mf nav in higher price and again u buy it same thing in higher price ??? 🤔 isn't that u are buying stocks or mf nav in higher price just bcoz of tax harvesting... points to discuss more..............
Hello @ankurwarikoo I have a question What if I bought 10 shares of X in Feb 2020 5 shares of X in March 2020 15 shares of X in July 2020 20 shares of X in Jan 2021 Total shares that I have of X is 50 How I will calculate one year to this share while selling ? Will I be able to took the advantage of long term capital gain in of these complete 50 shares in Feb 2021 ?
Pl ascertain whether on sale of hitherto unrealized stock/ mutual fund on loss, one has to purchase same stock or mutual fund to get the benefit of stock harvesting.
Thanks for clarifying tax ideas...🙏 🎉🎉🎉🎉🎉🎉🎉🎉🎉 Mutual fund upto 1 lakh, no tax Also says if sold before one year, 15% tax... is this tax on earning below 1 lakh too. Say ₹50k in nine months. If sold before one year, tax liability applies? (7500, 15%) 🎉🎉🎉🎉🎉🙏🙏🙏🙏 Am in confusion. Please help. Mutual fund sold before one year, 15% tax liability on any appreciating amount? 🎉🎉🎉🎉🎉🎉🎉🎉
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 :)
Is 1 lakh exemption applicable to all (including a person in 30% tax slab)?? In few articles I have read that you have to pay tax as per your tax slab. Please clarify. I am sharing the example below: Mr. Ash has taxable salary of INR 4 lakh and income from other sources (interest on FD and savings account) of INR 80k. Mr. Ash is smart. He knows that he pays no tax if his income is less than INR 5 lakh. His friend told him that he can book LTCG of upto INR 1 lakh and pay no tax on this too. Since it is “exempt income”. He went ahead and sold his index fund and booked a profit of INR 1 lakh. This is where tax planning goes for a toss. Mr. Ash’s taxable income will be calculated as under: INR Taxable Salary 4,00,000.0 Other Sources 80,000.0 LTCG on Equity 1,00,000.0 5,80,000.0 Notice that his total income has exceeded INR 5 lakh. This means he will not get the rebate under Section 87A. Here’s how his tax will be calculated: Tax on LTCG at 0% - 0 Tax on other Income (Slab rates) - 11,500
