Tax-Loss Harvesting Calculator
See how much LTCG/STCG tax you could save by harvesting a mutual fund loss — free, no login required
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What is Tax-Loss Harvesting?
Tax-loss harvesting is selling a mutual fund investment that's currently below your purchase price to "book" the loss, then reinvesting in a similar fund to stay invested. The booked loss can offset capital gains tax you'd otherwise owe on your profitable investments — reducing your overall tax bill without changing your market exposure.
LTCG — 12.5%
Applies if you held the fund for 1 year or more. No indexation benefit. First ₹1.25 lakh of long-term gains in a financial year is tax-exempt.
STCG — 20%
Applies if you held the fund for less than 1 year. Flat 20% rate on the full gain, no exemption threshold.
Frequently Asked Questions
What is tax-loss harvesting in mutual funds? expand_more
Tax-loss harvesting means selling a mutual fund that's currently at a loss to book that loss for tax purposes, which can offset capital gains tax on your other profitable investments — then reinvesting in a similar (but not identical) fund to stay invested in the market.
What are the current LTCG and STCG tax rates on equity mutual funds in India? expand_more
As of FY 2025-26, long-term capital gains (LTCG, held 1 year or more) on equity mutual funds are taxed at 12.5% with no indexation benefit, with a ₹1.25 lakh annual exemption. Short-term capital gains (STCG, held under 1 year) are taxed at 20%. These rates have been unchanged since Budget 2024 through Budget 2026.
Can I claim a loss and immediately buy back the same fund? expand_more
You can technically rebuy the same fund immediately — India doesn't have a formal 'wash sale' rule like the US. However, many investors choose a similar (not identical) fund in the same category to avoid any ambiguity and to maintain diversification, since the point is staying invested, not timing the market.
Do I need to pay tax if my long-term gains are under ₹1.25 lakh? expand_more
No. Long-term capital gains on equity mutual funds up to ₹1.25 lakh in a financial year are exempt from tax. Harvesting a loss only helps offset tax on gains above this exemption threshold — if your total LTCG for the year is already under ₹1.25 lakh, there may be no tax to save.
For informational purposes only, not tax advice. Consult a qualified tax advisor before making investment decisions.