Equity investors looking to save on taxes on Long-Term Capital Gains (LTCG)—arising from the sale of shares or equity-based mutual funds—can utilize a strategy known as "Tax Harvesting." This is a two-step process. First, you sell the relevant asset (shares, equity mutual funds) on or just before March 31, 2026; subsequently, to avoid or minimize potential losses due to market volatility, you repurchase the very same asset within a very short timeframe.

What is Tax Harvesting?
Booking profits up to the exemption limit.
Utilizing losses to offset gains.
Reducing overall tax liability.

Tax Rules
LTCG (Holding period > 12 months): Exempt up to ₹1.25 lakh per financial year; gains exceeding this limit are taxed at 12.5%.
STCG (Holding period ≤ 12 months): Taxed at 20% (under Section 111A).
Two ways you can save on taxes:**

1. Tax-Gain Harvesting
Sell shares or funds that you have held for more than one year.
Book profits up to ₹1.25 lakh; this amount is subject to zero tax.
Reinvest the proceeds immediately to ensure you remain invested in the market. This action increases your cost of acquisition, thereby reducing the tax liability on future profits.

2. Tax-Loss Harvesting
Sell investments that are currently trading at a loss.
Adjust (set off) these losses against your profits to reduce your overall tax burden.
Losses can be carried forward for up to eight subsequent years.

Set-off Rules
Long-Term Losses: Can be set off only against Long-Term Capital Gains.
Short-Term Losses: Can be set off against both Short-Term and Long-Term Capital Gains.

Don't Forget:
Profits or losses must be booked before March 31st. The strategy works only if the transaction is completed within the same financial year.

Do you know the dates?

IPO Listings
March 24: Raajmarg Infra Inv Trust Ltd (₹6,000 crore)
March 24: GSP Crop Science Ltd (₹400 crore)
March 30: Central Mine P&D Institute (₹1,842 crore)
Announcements
March 24: Manufacturing and Services PMI
March 28: Industrial Production

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