Save Tax in MF and Stocks скачать в хорошем качестве

Save Tax in MF and Stocks

Lets say you invested 10L in mutual funds or stocks & it is now 11.25L. All you have to do is redeem your investments & reinvest it immediately. When you do this, you end up paying no tax on the 1.25L capital gains as this is exempted. Long Term capital gains tax upto 1.25L is exempt every year. So the next year also when you invest 11.25L & it becomes 12.5L, you can again repeat this & pay no tax. In 5 years if you continue to do this, your 10L will become 16.25L & yet you will pay no tax vs 62,500 as tax if your 10,00,000 becomes 16.25L at the end of the 5th year without tax harvesting each year like explained above. But there are a couple of things to keep in mind, (1) This is only applicable on Long Term Capital Gains tax & hence your investments have to be invested for over a year (2) There can be a re-investment risk in this. When you sell your investments, it will take 2 days for you to receive the money in your bank account to re-invest. In those 2 days markets can go up & you can end up losing the returns for those 2 days. The markets can fall also benefiting you more but this is a risk you need to understand while you do this Tax Harvesting. #tax #capitalgains #mutualfunds #equity #FPA #FPAEdutech #CFP