A legal way to save ₹15,625: tax harvesting

It’s rare for the #government to give anything “free” to #taxpayers.
But there is one legal way to save up to ₹15,625 in taxes, if used correctly.
👉 Tax Loss/Gain Harvesting
Here’s how it works 👇
Under current rules, long-term capital gains (#LTCG) on #equities up to ₹1.25 lakh are tax-free.

So if you’re sitting on profits:
- Sell your long-term equity holdings
- Ensure total gains booked are within ₹1.25 lakh
- Buy them back (even the same day)
Result?
👉 You reset your purchase price (cost basis)
👉 And legally avoid tax on those gains

Where this works best
- Equity #MutualFunds (simpler due to NAV-based pricing)
- Direct equities (possible, but price movement risk exists)

Important things to keep in mind
- Ensure sufficient liquidity (to execute buyback immediately)
- Complete before the financial year-end, with 31st Mar being a holiday, only one working day left!
- Don’t exceed ₹1.25 lakh gains
- Reinvest the amount, don’t divert it to expenses. No new gadget, no new car, or a vacation!

Why most people miss this
- Because it sounds “too simple” or they are not aware of this.
- Or because we focus more on returns… than tax efficiency.
- Or they are worried their #CAGR would reduce, thanks to a change in buying prices!

We spend months chasing extra 1–2% returns…
But ignore simple strategies that can add risk-free post-tax gains.

Have you tried #TaxHarvesting? What has been your experience?