Comment on Tax loss harvesting opportunity - FY 2017/18

Aby Thomas commented on 28 Mar 2018, 02:01 PM

Hello,

Does this really matter to do tax harvesting on end of Financial year?
or Should we just consider only the 365 day period to do tax harvesting?

Assume selling (booking loss) of 1 lac today and buying same shares on next trading day
Two scenarios if I sell today (end of FY)
1- Price moved up the next trading day, so not beneficial
2- Price decreases the next trading day, and I buy again – so it “looks like” beneficial.

Suppose I hold on to the loss without selling on last day of FY:
Two scenarios:
1- Price decreased further – I book more losses next financial year (within STCG period of 365 days), so more tax saved next year (If STCG is profit next year, else if loss, carry forward to next 8 years)
2- Price increased – My loss reduced next financial year, and I continue to hold or sell (book less loss)

Just saying, unless the loss is within the 365 day period, is there really a benefit in tax harvesting? or am I missing something 🙂

Thanks,
Aby

View the full comment thread »