As @UprightBat rightfully mentioned,  
 You don’t have to be pay taxes if you don’t withdraw the funds. Looks like you are missing something

Software Engineer

Booking , Reinvesting and paying  LTCG is normal process .  
 Don’t understand why u mention STCG ? Are you planning to book that and again reinvest ? What will you gain from it.?

If i m booking gains, then stcg will apply right? Or it won’t if I reinvest? And reinvest what -principal or principal + interest?

Growth Manager

Product Manager

If you have any loss making funds, you can definitely benefit from those with tax loss harvesting. https://support.zerodha.com/category/console/reports/taxation/articles/what-is-tax-loss-harvesting 
  
 Not sure why you would want to book profits and pay tax on LTCG right away.

You're a little confused about the concept. Stcg is not good, ltcg is fine to book if you're in the lower salary bracket and will go into the higher bracket soon. But even then withdrawing it and reinvesting it doesn't serve any purpose. It's better to withdraw it and keep it with you.

That’s for stcg - that’s as per tax slab. 
 Not moving to any higher slab.

Product Owner

I don’t think that will impact taxes(not using taxfree money, and reinvesting at same NAV)…also selling loss making assets might help in reducing taxable amount, but in this case I don’t think so…

Software Developer

Hello Viners! I am thinking of withdrawing funds from MFs I have invested in with LTCG  ₹1 lac and reinvesting the entire amt into the same fund. This is to book gains and avoid taxes. I know STCG ...

Welcome to Personal Finance's Private Community

Hello Viners!
I am thinking of withdrawing funds from MFs I have invested in with LTCG ~ ₹1 lac and reinvesting the entire amt into the same fund. This is to book gains and avoid taxes. I know STCG will have to be paid which i am okay with.
Anything fundamentally flawed with this process or a normal practice?
Thanks!

Book gains and reinvest?

Book gains and reinvest?- Grapevine

I recently bought a home by selling some mutual funds + bank loan. 

I still have some mutual funds left and I was wondering if I could reduce my tax liability on capital gains by selling and re buying mutual funds. 

Anyone who has done this? Or anyone who has a good CA who can advise on tax consultation?

Thanks in advance :)

Tax advice

Program Manager

Can someone here explain the LTCG and STCG taxation on equity investments (or maybe applicable to other asset classes also) ? From what I understand, LTCG is taxed at 10% on profits exceeding 1 lakh. However, when making a partial withdrawal, what exactly constitutes profit?

let's say I have invested 10 lac in a mutual fund today and after 3 years grew to 13 lakhs with profit of 3 lakhs, now if I withdraw 2 lakhs after that 3 years, will be it be considered as profit withdrawal or the withdrawal of the principal that I invested? and what will be the taxes on that?

LTCG and STCG taxes on equity investements

Tax harvesting is a strategy of selling your equity units to book long-term capital gains and reinvesting the proceeds in the same stock.

You have to pay tax @ 10% on long term gains(On gains >1L)  arising from sale of listed equity shares/mutual funds.

You can book profits on stocks held for more than 12 months upto Rs. 1 lakhs in a financial year, long term profits upto 1 Lakh in a FY are exempt from taxes under income tax act.
You can reinvest the proceeds again in the same stock hence having that stock in your long term portfolio.

LTCG: Held for >12 months

Please note you will be incurring a small amount in brokerage and other charges.

Tax harvesting- Save 10,000 in taxes before March ends

Chartered Accountant

All the UNBOOKED Gains in your Portfolio would now attract -

25% MORE LTCG (10% to 12.50% is NOT 2.5%, but 25% more), Surcharge extra as applicable.

33.33% MORE STCG (15% to 20% is NOT 5%, but 33.33% more), Surcharge extra as applicable.

More taxes

Hello folks. While I'd like to remain anonymous very much, here's what I can share about myself.

1. Working in consumer finance.
2. Love personal finance and helping people out with it.
3. Have published 10,000+ pieces of financial content in the mainstream media.
4. Wrote a best-selling book on money management. It was No. 1 on Amazon once upon a time. 
5. Lately been appearing on TV regularly for personal finance discussions.
6. Saved like crazy through my 20s and 30s, brought two apartments; have an 8-figure net worth mostly thanks to my mutual fund investments. It's not much but it's hard-earned.
7. My unrealised aspiration is travel and I'm working on it now.

No, I'm not selling anything. No commissions, no referral links, no finfluencing. 

Just want to talk, exchange ideas, and learn from you all. Maybe I'll feature you in my next book. :)

Ask me anything.

Let's talk money habits.

Corporate Strategist

Current Portfolio review - Anything that I should consider selling? (Shared my current SIPs desc/ratio in another post due to single image/post limitation, I've done 35k/70k/1L LTCG Profit harvesting in last 3 years)

I had invested in a SIP (equity) for 3 years and am withdrawing the investment via a 12 month SWP spread across two financial years. 

This helps me ensure that the capital gains do not exceed 1L in any of the financial years. 

Assuming a scenario where the capital gains exceed 1L, how will they be taxed? And if I need to claim an indexation benefit, how do I do it?

How are gains from SWP taxed?

Founder’s Office

I see most of the people have over 60% of their net-worth in some kind of a financial instrument. So do you plan to just take out the investment after some milestone to use it? Like how do u rotate from investment to liquid - on what condition or how often?
Like people advice to keep emergency funds worth in bank account but what about sudden big purchases, bills or so? Do u then just sell off the investment and wait for the money to hit ur bank and then proceed with the thing ?

Do you cash in ur investments often?

CA here. In case anybody has any query regarding Income-tax return filing, can comment below. Will try to help you out as much as possible.

Income- tax Return

Should i do any changes in my SIPs?

Data Scientist

I am of the understanding that capital gains under 1L are tax free and those gains aren’t to be added to your taxable income. However, I met a friend this evening who informed me that her CA says that capital gains are always added to the taxable income and are not really tax free regardless of them being under 1L. If this is true, my friend is not getting the 6K rebate she was hoping to get since her taxable income now crosses the 5L barrier. Had the capital gains not been added to her taxable income, she would well under this 5L barrier. 

Can anybody please confirm if this is indeed true?

Some additional context: The capital gains are from her ELSS investments which were sold in the last FY and amounted to about 50k over the sale of about 1.7L

If this is indeed true, I have a follow up question from an inversion POV - if capital gains indeed exceed 1L, will one then be taxed twice? i.e. The 10% LTCG tax as well as the slab based tax on taxable income (salary - dedications + capital gains)

Capital gains related tax query

Can someone share in detail how can I invest in US Stock Market from India, what would be the remmitance charges and what are the tax implications, other things to keep in mind l, etc etc..

Investing in US Stock Market

Sales

I have 2000 nifty bees ,I know market is all time high ,and it will fall. should I sell it and cash in ?

UX/UI Designer

Heyy folks, will be highly thankful for any clue. I am entering LTCG of just 59K, and yet ITR starts charging 20% tax on it. I have already tried entering it in different-different sections, but nothing worked. Now, I am thinking to delete the current saved form and start all over again, just in case it is some temporary issue on their side with their serve side caching? Where exactly the LTCG needs to be entered that, that 1 lakh exemption is obtained?

Book gains and reinvest?

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