How do I use the tax loss harvesting calculator?

1. Enter your short term capital gains: Add the gains on equity held for one year or less, taxed at the short term rate. 2. Enter your long term capital gains: Add the gains on equity held for more than one year, eligible for the annual long term exemption. 3. Enter your realised losses: Add your short term and long term capital losses separately. These are the losses you can book to offset gains. 4. See the set off applied: The calculator offsets losses against gains in the prescribed order and shows the net taxable gains that remain. 5. Review the tax saved: Compare your tax before and after harvesting to see the saving. Use Share to save the scenario.

What is tax loss harvesting in India?

Tax loss harvesting means realizing capital losses to offset realized capital gains in the same financial year, reducing current-year tax outgo. This calculator is scoped to listed equity shares, equity mutual funds, and similar gains taxed under the equity capital-gains framework.

What rates are used in this calculator?

It uses the Budget 2024 listed-equity style rates: STCG at 20% and LTCG at 12.5%, with LTCG exemption of ₹1.25 lakh.

What is the set-off order used here?

The calculator sets off STCL against STCG first, LTCL against LTCG second, then any remaining STCL against LTCG, and finally applies the LTCG exemption.

Can unused losses be carried forward?

Typically yes, subject to return filing and tax-law conditions. Capital losses can generally be carried forward up to 8 assessment years under Indian rules.

Does this replace professional tax advice?

No. This is an educational estimate and does not include cess, surcharge, non-equity asset rates, or personal filing nuances.

Tools/

Tax Loss Harvesting Calculator

Estimate tax saved by setting off listed-equity short-term and long-term capital losses against listed-equity gains under Budget 2024 rules.

Listed Equity STCG

₹0₹1,00,00,000

Listed Equity LTCG

₹0₹1,00,00,000

Listed Equity STCL

₹0₹1,00,00,000

Listed Equity LTCL

₹0₹1,00,00,000

Estimated Tax Saved

₹22,500

after applying listed-equity loss set-off and LTCG exemption

Scope

Use this only for listed equity shares, equity mutual funds, and similar gains using the 20% STCG / 12.5% LTCG framework. It is not for debt funds, property, gold, or other non-equity capital assets.

Tax Without Harvesting

₹61,875

Tax With Harvesting

₹39,375

Net STCG

₹1.5 L

Net LTCG

₹2.0 L

Loss Carried Forward

₹0

Carried-forward losses are usable against future gains for up to 8 assessment years if you file on time.

Tax Comparison

Set-off Steps Breakdown

Step	Description	Amount
1	STCL set off against STCG	₹50,000
2	LTCL set off against LTCG	₹1,00,000
3	Remaining STCL against LTCG	₹0
4	LTCG Exemption (₹1.25L)	₹1,25,000
5	Final Taxable STCG	₹1,50,000
6	Final Taxable LTCG	₹75,000

About the tax loss harvesting calculator

Tax loss harvesting is the practice of booking losses on investments to offset taxable capital gains, lowering the tax you owe for the year. This calculator takes your short term and long term gains and losses, applies the set off rules in the correct order, and shows how much tax you can save.

It is useful near the end of a financial year, when you can see your realised gains and decide whether selling loss making holdings is worthwhile. The tool handles the priority rules: short term losses offset short term gains first, long term losses offset long term gains, and any leftover short term loss can then offset long term gains.

The result is an estimate of tax on equity capital gains using current rates and the long term exemption. It does not account for your slab, other income, or the cost of churning your portfolio, so weigh the saving against transaction costs and your longer term strategy.

Frequently Asked Questions

Enter your short term capital gains
Add the gains on equity held for one year or less, taxed at the short term rate.
Enter your long term capital gains
Add the gains on equity held for more than one year, eligible for the annual long term exemption.
Enter your realised losses
Add your short term and long term capital losses separately. These are the losses you can book to offset gains.
See the set off applied
The calculator offsets losses against gains in the prescribed order and shows the net taxable gains that remain.
Review the tax saved
Compare your tax before and after harvesting to see the saving. Use Share to save the scenario.

Tax saved = tax on gains before set off, minus tax on net gains after offsetting losses

Short term capital gains (STCG) are taxed at 20%
Long term capital gains (LTCG) above the ₹1,25,000 annual exemption are taxed at 12.5%
Short term losses offset short term gains first, then long term losses offset long term gains
Any leftover short term loss can then offset remaining long term gains

The ₹1,25,000 exemption applies to net long term gains after losses are set off. Booking losses does not erase your investment thesis, so only harvest where it fits your plan.

A worked example

Suppose you have ₹1,00,000 of short term gains, ₹3,00,000 of long term gains, ₹60,000 of short term losses, and ₹40,000 of long term losses.

Tax before harvesting: ₹41,875
Net short term gain after set off: ₹40,000
Net long term gain after set off: ₹2,60,000
Taxable long term gain (after ₹1.25L exemption): ₹1,35,000
Tax after harvesting: ₹24,875
Tax saved: ₹17,000

Booking ₹1,00,000 of losses against your gains cuts the tax from ₹41,875 to ₹24,875, a saving of ₹17,000. The losses reduce both your short term and long term taxable gains before the long term exemption is applied.

Last reviewed 3 Sep 2026 · Sources: Income-tax Act, 2025 (Income Tax Department)

Short term and long term capital gains rates and the ₹1,25,000 long term exemption are set by the Budget and can change.
Unused capital losses can usually be carried forward for up to eight assessment years if you file your return on time, so a loss need not be wasted in the current year.
Selling and rebuying to harvest losses incurs brokerage and may change your holding period, which resets the clock for long term treatment.
Harvest only where it suits your strategy. Selling a quality holding purely to book a loss can cost more in missed returns than it saves in tax.

Find the losses worth harvesting in your own portfolio

Import your broker and mutual fund statements and Finest shows gains and losses across every holding.

Find the losses in your portfolio

Tax Loss Harvesting Calculator

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Tax Comparison

About the tax loss harvesting calculator

Frequently Asked Questions

Find the losses worth harvesting in your own portfolio

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