Tax Loss Harvesting Calculator
Tax Loss Harvesting Calculator
Understand how booking a loss today affects your total tax liability across both periods — at a constant 12.5% LTCG rate.
Tax Rate: 12.5% (LTCG — constant)
₹10
₹8
₹12
📌 Without harvesting
Period 1 — no action
Tax paid₹0.00
Period 2 — sell at future price
Buy price₹10
Sell price₹12
Capital gain₹2.00
Tax @ 12.5%₹0.25
Total tax paid₹0.25
🔄 With harvesting (sell & rebuy)
Period 1 — book the loss
Buy price₹10
Sold at (harvest)₹8
Loss booked−₹2.00
Tax saved now+₹0.25
Period 2 — rebuy at harvest price, sell later
New cost basis₹8
Future sell price₹12
Taxable gain₹4.00 (not ₹2!)
Tax @ 12.5%₹0.50
Total tax paid₹0.25
Tax impact — waterfall view (per share)
Period 1 saving vs Period 2 extra tax vs consolidated net effect
Tax saving (Period 1)
Extra tax (Period 2)
Net consolidated
−₹0.25
+₹0.25
₹0.00
Net consolidated tax effect
Difference between harvesting vs not harvesting
₹0.00 — Deferred, not saved
Key insight: At a constant 12.5% tax rate, tax loss harvesting does not reduce your total tax burden — it only defers it. The tax saved in Period 1 (₹0.25) is exactly offset by extra tax in Period 2 (₹0.25) because the cost basis drops from ₹10 to ₹8. The waterfall chart shows this clearly — Period 1 dips negative, Period 2 rises positive, and the net bar lands at zero. The real benefit is the time value of money: you hold that deferred tax amount longer and can invest it in the interim.
* Tax rate of 12.5% reflects India's Long Term Capital Gains (LTCG) rate on listed equity & equity mutual funds held over 1 year (post Budget 2024). All figures are per share for illustration purposes only. This tool is for educational use — Please book your consulting with us for tailor made calculations.
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