Tax Loss Harvesting Calculator India — FY 2025-26
Calculate how much tax you save by harvesting unrealized losses on equity, mutual funds, and ETFs. India has no wash sale rule — sell and rebuy immediately. STCL offsets both STCG (20%) and LTCG (12.5%). Optimize which losses to harvest first and plan your year-end strategy before March 31.
How to Use This Calculator
Harvesting Savings tab
Enter your unrealized loss amount (the loss you would book by selling), choose whether it is STCL (held < 12 months) or LTCL (held ≥ 12 months), and enter your already-realized STCG and LTCG for the year. The calculator shows your tax without harvesting vs. with harvesting, and the exact savings amount. Remember: STCL can offset both STCG and LTCG, while LTCL can only offset LTCG.
LTCL vs STCL Strategy tab
Add multiple losing positions with their holding periods. The calculator classifies each as STCL or LTCL and recommends the optimal harvest order: STCL positions first (more flexible offset), then LTCL. You can see exactly which positions to sell and the total tax savings.
Year-End Tax Planning tab
Enter all your portfolio positions — both gains and losses — with holding periods. The calculator identifies which losing positions to sell before March 31, shows the optimal offset strategy, and calculates your total tax savings. Since India has no wash sale rule, you can rebuy every position immediately.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a CA, financial advisor, or save it for ITR filing reference.
The Formula — Capital Loss Set-Off Rules
Tax loss harvesting in India follows the set-off rules under Sections 70 and 71 of the Income Tax Act, combined with capital gains rates from Finance Act 2024:
STCL = Loss on asset held < 12 months (equity) or < 24 months (non-equity)
LTCL = Loss on asset held ≥ 12 months (equity) or ≥ 24 months (non-equity)
Set-Off Rules (Section 70):
STCL offsets: STCG first, then LTCG (both types)
LTCL offsets: LTCG only (cannot touch STCG)
Tax Rates (Equity — FY 2025-26):
STCG = 20% (Section 111A) + 4% Cess = 20.8% effective
LTCG = 12.5% (Section 112A) + 4% Cess = 13% effective
LTCG exemption = &rupee;1,25,000 per year (Section 112A)
Tax Savings Formula:
Savings = Tax(without harvesting) − Tax(with harvesting)
Where Tax = (Taxable STCG × 20.8%) + (Taxable LTCG above &rupee;1.25L × 13%)
Carry Forward (Section 74):
Unabsorbed losses → carry forward for 8 assessment years
Condition: ITR filed by due date under Section 139(1)
No Wash Sale Rule:
Sell + immediately rebuy = loss booked + position maintained
New cost basis = market price on rebuy date
The key strategic insight: STCL is more valuable than LTCL because it offsets gains taxed at 20% (STCG) in addition to 12.5% (LTCG). Prioritize harvesting STCL positions first.
Example
Amit — Bengaluru investor, FY 2025-26
Amit has realized &rupee;3,00,000 in STCG and &rupee;2,00,000 in LTCG from equity trades. He also holds Nifty IT ETF with an unrealized loss of &rupee;1,50,000 (held 8 months = STCL).
Step 1: Tax without harvesting
Step 2: Harvest the STCL
Step 3: Tax after harvesting
Step 4: Rebuy
Amit saves &rupee;31,200 in tax by selling and immediately rebuying his Nifty IT ETF. His investment position is unchanged, but his tax bill drops by 43%.