Anushka Rathod Instagram – THE VIDEO WAS MADE IN MARCH 2024 AND AFTER THE UNION BUDGET 2024, THE RULES HAVE CHANGED.
According to the amendments:
-> The limit on the exemption of Long-Term Capital Gains on the transfer of equity shares or equity-oriented units or units of Business Trust has increased from Rs.1 Lakh to Rs.1.25 lakh per year.
-> The rate at which Long Term Capital Gains is taxed has increased from 10% to 12.5%.
There’s a smart strategy called tax harvesting that can help you save taxes!
It involves strategically selling a portion of your investment to secure long-term capital gains and then reinvesting the proceeds back into the same securities.
This allows you to offset gains against losses or take advantage of exemption limits, ultimately reducing your tax burden and boosting your post-tax returns.
Here’s how it works: Imagine you invest ₹ lakh and see a gain of Rs. 1 lakh.
By selling before the gains reach ₹1 lakh (say at ₹ 3,98,000) and then repurchasing the investment, you can:
• Avoid the 10% Long-Term Capital Gain Tax on the initial long-term gains over ₹1 Lakh.
• Establish a new, higher-cost base (₹ 3,98,000) for future calculations, reducing your taxable gains down the line.
And as your investments appreciate again by ₹ 1 lakh, you can repeat this process to further maximize your post-tax returns.
For those investing through SIPs, remember to sell units purchased at least a year ago to qualify for tax-harvesting benefits.
Disclaimer: This information is intended for educational purposes only and should not be considered a substitute for professional financial advice.
[anushkarathod, tax, finance, taxharvesting]
#finance #tax #LTCG #taxharvesting | Posted on 27/Mar/2024 12:00:16
