If you buy the same stock within 30 days of selling it at a loss, the IRS will consider it a "wash sale" and the loss will not be recognized for tax purposes.
Can you pls explain in this regard If we need to tax harvesting in MF, we need to sell some units and buy the same units on the same day. Kuvera prefer this. So to buy those sold units again,we need some cash in our bank,so we can invest the amount again. Then the sold unit amount will be credited in our account after 4 or 5 days. Am I correct? Or is there any misunderstandings?
Hi Boosan, Very Good Information. Thanks for your effort. My doubt is if we sell Mutual fund units for Tax Harvesting and buying the same units and hold for Long term some situation need to sell for all Units then the Tax is deducted here ? Ex:- 2023 I am selling and Buying on Tax Harvesting 1000 units for 1L + SIP is for 1L = Total 2000 Units end of the year 2024 I am selling and Buying on Tax Harvesting 800 units for 1L + SIP is for 1L = Total 1600 Units end of the year 2025 I am selling and Buying on Tax Harvesting 600 units for 1L + SIP is for 1L = Total 1200 Units end of the year On 2026 I am planning to sell All 4800 Units for 6L then How it's benefit for tax and your suggestion ?
Tax harvesting will affect compounding in stock?.. example - if I buy 100 share in xyz company and company issue bonus of 1 :1 then my share become 200 count. On that time if I sell my share for tax harvesting I need to sell all 200. Then if I need to buy the share again after 2 or. 3 days with same amount I will get same 100 share only right.. here bonus will not reflect right? Share count will decrease from 200 to 100
Anna, I have one doubt. ithu per MF ku 1+ lak mela profit vantha tax applicable aguma or overall portfolio sethu 1+ lak pona applicable aguma ? For example i have 5 MF in my portfolio and each has a profit of 20k and is it applicable in Tax?
Excellent explanation.bro have one more doubt .if i use tax loss harvesting method in LTCG .For example if profit 1.2k i sell the different funds like hdfc ,axis and other funds approximately 1 lakh its tax free.my question is 1. if i am agin not buy the fund what happen? 2.if i sell hdfc fund 50 units worth Rs.30k , axis fund 30 units worth Rs.40k and nippon fund 20 units 30k.i sell overall 100 units tax loss harvesting method with 2 days again buy the same fund house same unit or same unit any other fund house.
Tax loss harvesting is effective the moment you book losses, it is NOT necessary to buy the same funds/units exactly. I recommended buying it back for those who would want to tax harvest their losses and still hold on to the same stocks/funds.
Let us consider your examples 1. Even If you don't buy the same funds back, you can still show Rs 1L loss and tax harvest it. 2. You have sold different funds showing a loss of up to Rs 1L, Should you buy exactly same amount same units same funds. Answer again is NO, you can choose to buy any funds, and still you can harvest the loss. Then why did I say we should keep track of what we sold and buy back them again? Answer : Assume you bought a great stock like HDFCBank but it is currently in loss of 1L, now you can take advantage of this loss for harvesting and buy the stock again because you are still confident about HDFCBank and want to not disrupt the investment. If you think you don't want to hold the stock, you can choose to buy a different one.
Bro, Antha mutual funds la Namma Antha 1,00,000 kana profit withdraw panna aprm buy panna mutual funds epdi bro compounding effect help pannanum, pls any one explain
Bro 1 lakhs tax exemption oru stock ku matuma illa ella stock ku ma . for example na titan stock la 1lakhs profit and sbi stock la 1 lakhs profit and rendu stock kum na sell pana oru stock la exemption kadaikuma illa rendu stock la kadaikuma?
If I get a profit of over 1 lakh(so a total of over 2 lakhs) in 2 different Mutual funds in the same financial year, Can I enjoy the tax exemption of 1 lakh in both funds? Please reply
Hi bro, if we sold our mutual fund units and bought the same units after two days means here we will loose the compounding effort? can you please explain..
Assume you buy MF for 100 you sell it at 120, you buy it almost at the same price aft 2 days. What happened here? Nothing. It doesn't affect compounding, it just affects the ease of tracking your returns. So it's better to use some tools or manually note down your returns before and after tax harvesting for better tracking
