Tax loss harvest in MF

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Last Comment 2024-12-26

2024-12-25

How does tax loss harvest work in MF. I got a suggestion to sell one MF units and buy them before 3 PM. That scheme has completed one year it gave 22% return. I don't understand how loss gets harvested in this case and why am I selling and buying it on the same day? What is the point of doing it.

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https://www.desidime.com/comments/permalink/10577873

flash007

2024-12-25

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MF Cutoff time:

buying before 2 pm to get same-day EOD NAV
Sell before 3 pm to get same-day NAV

Harvesting:

Profit Harvesting: Book LTCG 1.25L rs and reinvest to pay zero tax
Loss Harvesting: Book Whatever loss you have and reinvest to set off your tax from the profit (STCG or LTCG greater than 1.25L)

Usage:

Works in MF and stocks both.
In stocks, you might not be able to do it on the same day because the order might get converted to Intraday. so you need to buy on 1 day and sell on another day, OR vice versa

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https://www.desidime.com/comments/permalink/10577873

flash007

2024-12-25

Link Copied

MF Cutoff time:

buying before 2 pm to get same-day EOD NAV
Sell before 3 pm to get same-day NAV

Harvesting:

Profit Harvesting: Book LTCG 1.25L rs and reinvest to pay zero tax
Loss Harvesting: Book Whatever loss you have and reinvest to set off your tax from the profit (STCG or LTCG greater than 1.25L)

Usage:

Works in MF and stocks both.
In stocks, you might not be able to do it on the same day because the order might get converted to Intraday. so you need to buy on 1 day and sell on another day, OR vice versa