What is tax loss harvesting?

Tax-Loss Harvesting: Selling shares at a loss to offset taxable gains.

Tax-loss harvesting involves selling shares that have declined in value to realize a loss. These losses can be used to offset capital gains, thereby reducing your taxable income.

How Does Tax-Loss Harvesting Work?

Sell underperforming assets: Identify shares with unrealized losses.
Offset gains: Use the realized losses to offset gains from other shares.
Carry forward losses: If losses exceed gains, you can carry them forward for up to 8 years in India.