FundzBazar

Tax Harvesting — FundzBazar
Smart Tax Planning for Investors

Tax Harvesting:
Grow More,
Pay Less Tax.

Tax harvesting helps you reduce your tax outgo, improve post-tax returns and make better investment decisions without changing your overall investment strategy.

Start Tax Harvesting →

Long Term Gain Harvesting

Long Term Capital Gains up to ₹1,25,000 per year for Individuals and HUF are completely exempt from tax. Smart investors use this limit every year to save up to ₹62,500 annually.

Your Tax Harvesting Dashboard
FundzBazar identifies the pending gains in the fiscal year which you can take advantage of to utilise the ₹1,25,000 LTCG limit and help you save taxes.
Booked Gain
₹1,00,000
Booked This Year
Gains already realised in this fiscal year
Pending Gain
₹25,000
Available to Harvest
Book this to fully utilise ₹1.25L exemption
₹1,25,000 LTCG Exemption Used₹1,00,000 of ₹1,25,000  (80%)
💡 You have ₹25,000 remaining to harvest before 31st March to fully utilise your ₹1.25L exemption and save on taxes this year.
5-Year Illustration: Same Portfolio, Different Outcomes (10% CAGR)
₹20,00,000 invested in Scheme X. After 5 years the portfolio grows to ₹32,21,020, a total gain of ₹12,21,020. Here is how harvesting the ₹1.25L annual LTCG exemption every year makes a real difference.
Particulars✅ With Tax Harvesting❌ Without Planning
Investment Amount₹20,00,000₹20,00,000
Final Portfolio Value (@10% CAGR over 5 Yrs)₹32,21,020₹32,21,020
Total Gain₹12,21,020₹12,21,020
LTCG Exemption Utilised₹6,25,000  (₹1.25L × 5 yrs)₹1,25,000  (only once)
Taxable Gain₹5,96,020₹10,96,020
Tax Rate (LTCG)12.5%12.5%
Tax Payable₹74,503₹1,37,003
Tax Saved Annually₹12,500—
Tax Saved Annually
₹12,500
That adds up to ₹62,500 over 5 years. The difference is not in returns. It is in how you utilise your ₹1.25L annual exemption every year.
🏆
How FundzBazar Helps You Harvest: Zero Market Risk
FundzBazar helps you harvest taxes without market risk. Our preferred method, Option Change, involves switching between Growth and Dividend options of the same scheme to book gains and reinvesting into the original option. Market risk is eliminated completely.
Tax Harvesting Option
🔁
Option
Change
🔀
Switch
🏦
Inter AMC

Loss Harvesting

Losses in your portfolio can be harvested strategically to reduce taxable gains and save real money at tax time.

Set-Off Rules: Which Losses Offset Which Gains?
Understanding set-off rules is the foundation of effective loss harvesting.

Short Term Capital Loss (STCL)

Can be set off against both STCG and LTCG, giving you maximum tax-saving flexibility.

→ Offsets STCG & LTCG

Long Term Capital Loss (LTCL)

Can only be set off against LTCG. It cannot be used to offset Short Term Capital Gains.

→ Offsets LTCG only
Example: Using STCL to Reduce Tax
Your LTCG: ₹3,00,000 |  Available STCL: ₹1,00,000
❌ Without Loss Harvesting
Total LTCG₹3,00,000
Less: LTCG Exemption−₹1,25,000
Taxable LTCG₹1,75,000
Tax Rate12.5%
Tax Payable₹21,875
✅ With Loss Harvesting
Total LTCG₹3,00,000
Less: STCL Set-Off−₹1,00,000
Net LTCG after Set-Off₹2,00,000
Less: LTCG Exemption−₹1,25,000
Taxable LTCG₹75,000
Tax Rate12.5%
Tax Payable₹9,375
🎉
Tax Saved = ₹12,500By harvesting your STCL of ₹1,00,000 before year-end, your tax bill drops from ₹21,875 to ₹9,375 without any change to your investment strategy.
⚠️ Why is the saving at 12.5% and not 20%?
The STCL reduces your Long Term Capital Gain, not your Short Term Capital Gain. So the saving occurs at the LTCG rate of 12.5%. Had the same loss been applied against STCG instead, the saving would have been at the higher rate of 20%.

Things to Consider Before Harvesting

Tax harvesting is powerful but only when done thoughtfully. Run through this checklist before you proceed.

1

Check for Exit Load

Most equity funds carry an exit load if units are redeemed within 1 year. Always confirm your units are exit-load free, or that the tax saving clearly outweighs the cost.

2

Holding Period Reset: Most Overlooked Cost

When you sell and repurchase (even via Option Change), the holding period resets to zero. New units must be held for another 12 months to qualify as long-term.

3

Timing Before 31st March

Gain harvesting must be completed before 31st March. Plan early as mutual fund redemption settlements take 2 to 3 business days to process.

4

Net Benefit Must Exceed Transaction Costs

Confirm the total tax saved is greater than STT, stamp duty, or exit loads triggered by the transaction.

Start Harvesting
Your Taxes Today

FundzBazar automatically identifies your pending gains and losses. One click is all it takes to save ₹12,500 every year with zero market risk.

Start Tax Harvesting Now →
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