Question 1

What is TaxHarvestLab?

Accepted Answer

TaxHarvestLab is a capital gains tax optimization utility for Indian investors. It analyzes your current portfolio and tax state, and suggests actions based on Indian tax rules to help you understand the tax impact before selling.

Question 2

What is tax harvesting?

Accepted Answer

Tax harvesting means selling certain investments strategically to reduce your capital gains tax, using exemptions and offset rules allowed under tax law. This can involve realizing gains within tax-free limits, or realizing losses to offset taxable gains.

Question 3

What are LTCG and STCG?

Accepted Answer

For listed equities in India: LTCG (Long-Term Capital Gains) are gains on holdings sold after 12 months, taxed at 12.5% above Rs 1.25L exemption. STCG (Short-Term Capital Gains) are gains on holdings sold within 12 months, taxed at 20% flat rate. They have different tax rates and offset rules.

Question 4

What is gain harvesting?

Accepted Answer

Gain harvesting refers to realizing long-term capital gains up to the annual tax-free exemption (currently Rs 1.25L for listed equities), so that future gains start from a higher cost base.

Question 5

What is loss harvesting?

Accepted Answer

Loss harvesting refers to selling investments that are in loss so that the realized loss can be used to offset taxable gains in the same year or carried forward to future years.

Question 6

What is the difference between realized and unrealized gains?

Accepted Answer

Realized gains/losses are from investments you have already sold. Unrealized gains/losses are from investments you still hold. Tax is calculated only on realized amounts.

Question 7

How does TaxHarvestLab decide what to recommend?

Accepted Answer

The optimizer applies standard Indian tax rules to your current tax state: annual exemptions (Rs 1.25L LTCG), loss offset rules (STCL can offset LTCG, LTCL cannot offset STCG), and carry-forward rules (up to 8 years). It does not predict prices or markets. It only reasons about tax law.

Question 8

Is this a tax filing or ITR tool?

Accepted Answer

No. TaxHarvestLab does not file returns or generate ITR forms. It provides an optimization report that summarizes recommended actions, which you can use for your own planning or share with your CA.

Question 9

Is my data secure?

Accepted Answer

Yes. We follow standard security practices. Your data is transmitted over HTTPS and is not shared with third parties. Your data is securely processed on our servers only to generate the optimization report and is not permanently stored.

Question 10

Is this tax advice?

Accepted Answer

No. TaxHarvestLab is a calculation and decision-support utility. It does not provide personalized tax or financial advice. The output is for informational purposes only. For complex situations or when filing returns, professional advice from a qualified Chartered Accountant is recommended.

Capital Gains Tax Questions: LTCG, STCG & Tax Harvesting (India)

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