Comment on Tax loss harvesting

Nithin Kamath commented on 25 Mar 2015, 11:10 AM

1. You can’t setoff any STCG/business losses against your salary income. If you have a business income of 3lks, and assuming you made business losses(i.e you show your trading as a business), you can setoff the business income using business losses to reduce your tax outgo.
2. Even if you are using tax loss harvesting as an active trader, you can do it only to the extent of 8% of your turnover in case you are trying to avoid audit. (assuming your turnover for the year is less than 1cr, if it is more than 1 cr you will need an audit in any case, so you can harvest your losses to full extent).
3. Yes, if it is 6K you will need an audit, but if it is 8k, you will not need.

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