Stock price gone down? Use 'loss harvesting' by March 31 to reduce taxes for FY19-20, says Zerodha
Updated : March 20, 2020 08:12 PM IST
According to Zerodha, when investors park money in markets, they potentially have 2 types of taxes to pay- short term capital gains tax (STCG) and long term capital gains (LTCG).
Tax-loss harvesting is the process of selling securities at a loss to offset capital gains tax liability.
Tax loss harvesting starts with sale of the stock or an equity fund which is experiencing a consistent price decline.