WinterIsHere_

Book gains and reinvest?

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!

10mo ago

RomRomBhaiyo

Founder10mo

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

SabChangaSi

Stealth10mo

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.

WinterIsHere_

Stealth10mo

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

joker

Khatabook10mo

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.

WinterIsHere_

Stealth10mo

Thanks! Will check this out.

Seeker181

Others10mo

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.?

WinterIsHere_

Stealth10mo

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

UprightBat

velocity.in10mo

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…

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