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Save Tax Before March 31:
Smart Strategy for Investors
If you invest in shares or mutual funds, you still have a chance to save tax before March 31.
One smart way to do this is by using a strategy called tax loss harvesting.
Many investors don’t know about it, but it can help reduce your tax burden.
Let’s understand how it works in a simple way.
What is Tax Loss Harvesting?
Tax loss harvesting means selling those shares or equity mutual funds that are currently in loss.
At the same time, if you have other investments that are making profit, the loss from these sold investments can reduce your total taxable gains.
In simple terms:
Loss from one investment reduces profit from another
This lowers your total tax
With proper planning, this strategy can help you save a good amount of tax for the financial year 2026-27.
What If Your Entire Portfolio Is in Loss?
If all your investments are in loss, then tax loss harvesting will not give immediate tax benefit.
But you still have an option.
You can sell those loss-making investments before March 31 and carry forward the losses.
This means you can use these losses to reduce taxes in future years when you make profits.
This is called the carry-forward and set-off rule.
Tax Gain Harvesting:
Another Way to Save
Apart from losses, you can also use profits smartly through tax gain harvesting.
Under current rules:
Long-term capital gains (LTCG) up to ₹1.25 lakh are tax-free
The tax rate beyond that is 12.5%
So, by planning properly, you can save up to ₹15,625 in tax.
Simple Strategy Investors Can Follow
Here’s how you can use both strategies:
Review your portfolio carefully
Sell loss-making investments to reduce taxable profit
Book profits smartly within tax-free limits
If needed, you can reinvest again after selling
This way, you can manage your taxes without affecting your long-term investment goals.
In short, with a little planning before March 31, you can reduce your tax burden and make your investments more efficient.
