Published: 04th Sep 2024
By: Value Research
– Long-term gains (from investments held over 12 months): now 12.5% (up from 10%) – Short-term gains (from investments held under 12 months): now 20% (up from 15%) - Tax-exempt limit: now up to Rs 1.25 lakh (up from Rs 1 lakh) With higher rates, what can you do?
Sell your long-term equity investments to realise gains up to Rs 1.25 lakh (the tax exemption limit) each year. This way, you pay no taxes on these gains!
By using the Rs 1.25 lakh tax-free limit each year, you can lower your taxable income, potentially saving money over time while maintaining the total value of your investments.
Tax harvesting can reduce your tax bill, but it’s not without drawbacks. Want to know if it's worth the effort? Discover the pros and cons by clicking the link below!