Tax Loss Harvesting Calculator

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.

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

How is the tax saving calculated?

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

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.