Use the ₹1.25L annual LTCG exemption every year to legally reduce your equity fund tax. See exactly what to redeem & reinvest.
🌾 What is tax harvesting?
Every year, up to ₹1.25L in equity mutual fund gains are completely tax-free (LTCG exemption). By redeeming just enough to realise ₹1.25L gain and immediately reinvesting, you reset your cost basis at current NAV — permanently reducing your future tax liability. This is 100% legal and recommended by CAs.
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Your Portfolio Details
Total equity MF value today.
Total amount originally invested.
Expected growth rate going forward.
Years you plan to harvest.
Currently ₹1.25L per year. May change.
Currently 12.5% post Budget 2024.
Step-by-step harvest plan
Year-by-year breakdown
Year
Portfolio value
Unrealised gain
Harvest amount
Tax saved
New cost basis
Total tax saved
—
Over the harvest period
📊 Summary
Current unrealised gain—
Gain % of portfolio—
Tax if sold today (no harvest)—
Tax after harvesting—
Total tax saved—
Saving as % of portfolio—
Annual harvest amount—
⚠️ Important notes
• Harvesting works only for long-term holdings (held >12 months)
• Do this before March 31 each year
• Reinvest immediately — don't stay in cash
• STT applies on both redemption and reinvestment
• Works best for direct mutual fund holdings
Disclaimer: Tax calculations are simplified estimates. Actual tax liability depends on exact holding period, cost basis of each unit, and current tax laws. Consult a CA before executing tax harvesting.