Question 1

What is the LTCG exemption limit in India?

Accepted Answer

The Long Term Capital Gains (LTCG) exemption limit in India is Rs 1,25,000 per financial year. Any LTCG above this amount on listed equity shares is taxed at 12.5%. TaxHarvestLab helps you fully utilize this exemption by identifying which stocks to sell.

Question 2

How does tax loss harvesting work in India?

Accepted Answer

Tax loss harvesting involves selling stocks at a loss to offset capital gains. Short-term capital losses (STCL) can offset both STCG and LTCG. Long-term capital losses (LTCL) can only offset LTCG. TaxHarvestLab automatically identifies optimal loss harvesting opportunities in your portfolio.

Question 3

What is the STCG tax rate in India?

Accepted Answer

Short Term Capital Gains (STCG) tax rate on listed equity shares in India is 20%. This applies to shares held for 12 months or less. There is no exemption limit for STCG.

Question 4

Is TaxHarvestLab free to use?

Accepted Answer

Yes, TaxHarvestLab is completely free to use. Simply upload your Zerodha or Groww reports and get instant tax optimization recommendations. No signup required, and your data is processed locally without being stored on any server.

Question 5

What is FIFO method for capital gains calculation?

Accepted Answer

FIFO (First In, First Out) is the mandatory method in India for calculating capital gains on stocks. When you sell shares, the shares purchased first are considered sold first. TaxHarvestLab uses FIFO-compliant calculations based on your tradebook data.

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