Tax saving strategy every Investor should know | Money Psychology

[@amangarge]

Maybe Coin should come with an feature that allows Tax Harvesting of NAV without manual intervention.

[@ShailendraNaikwadi]

अभी भी नहीं समझे Coin is going to introduce this features This video is to promote it

[@08pkz]

From harvesting in farm to tax harvesting in markets! Ahh what a journey! 😂😂 Thanks for explaining this so beautifully and simply! Super creative way! Loved it! ❤

[@Zero1byZerodha]

Thank you ❤

[@harieshmk6346]

just in case, if there is not enough money in my bank account (equivalent to the withdrawn amount), there is nothing wrong in waiting two or three days until that amount hits our bank account right? I mean, as long as i am OK with the share/ NAV going up/down on those three days... If i missed something, correct me please?

[@rickiodious]

That's correct

[@MrSumedh12]

Should selling and buying be happening strictly the same day before 3pm? What’s the effect if it is reinvested just within couple of days?

[@AdilHusain]

How does this tax harvesting show In the tax filing? Will it just show units I sold or also show the ones which I purchased? As far as I know it shows the ones which are sold only. Is it only applicable for mutual funds or stocks as well? What if I sell one fund and invest in another, will it still be applicable?

[@sagarsharma3346]

Will it be applicable even if we withdraw from a fund and reinvest on same day in a different fund?

[@karthikeyanarumugam5222]

let's say I have 2k HDfC shares. And i dont want to invest in any other shares. After a year, If i sell all the 2k shares and then buy the same share again in the next day, will it still help in tax harvesting? I heard somewhere that repurchasing the same stock will not help. Please clarify

[@Zero1byZerodha]

No, it doesn’t matter if you sell and then repurchase the same stock. As long as you’ve realized capital gains, tax harvesting still works. Just make sure the stocks you’re selling have been held for at least one year to qualify for long-term capital gains benefits.

[@karthikeyanarumugam5222]

@@Zero1byZerodha thank you for your reply. I didnt expect a reply. Thanks for clarifying my doubt as well. 😊

[@Seilesh7]

How long can I wait before buying bank again !? Should i be doing it before 3pm same day / week / month / before financial year ends?

[@GauravArya-t5h]

Hi, but will it not be counted as an intraday rather than stcg/ltcg if we buy immediately same day?

[@thesaimonkabir]

It's only useful when you invest small amount, not for big one. But great video topic 😊

[@nomeshg]

Small amount is very controversial. For earning around 1.25 lakh each year to save tax invested amount needs to be 12.5lakhs done at 12% per anum. This might not be small amount for many.

[@nasifhashmi3252]

But we will not be exiting without any reason right , if we want the money for some emergency then we can't reinvest immediately right?

[@vm7240]

Can someone explain what's the point of doing all these if you're not going to exit the market? I mean, rather than doing all these heraferi, isn't it better to just stay put? Does this apply to only those who wants to change their investments (say from stock A to stock B)?

[@shikamaruuzumaki-ov2zd]

you didn't understood his point ig , he is using the cap on ltcg which is 1.25 lakhs where you dont have to pay taxes , so by just realizing your gain by selling after one year your ltcg gain will be exempted till 1.25 lakhs . For you other question he specificaaly said you need to reinvest to be in the market

[@jhonnyblazez]

Ya ur right, this will also help let's say u wanna shift to diff MF or stock in few years, which many ppl might do.

[@Prinjal_Boruah]

what about exit load?

[@YashKakrecha]

1% is still less than 12.5%. and some MF even have 0.04% exit load.

[@SHAMIKII]

Love the scenery outside the office.

[@Shubham_Toshniwal]

8:03 Every video is incomplete without the checklist mini story!😂😂👌

[@Zero1byZerodha]

Glad you feel that way!😉

[@satyakiguha415]

Went over my head....I don't have that much liquid cash to be able to sell everything and then buyback....plus most people would confuse and mix up everything in this process...also how can we keep track of units more than one year old। Vs units less than one year old if u have been making multiple investment s over many years in varying amounts in the same fund?

[@thegreatantz]

This is just too painful. Specially the part where you need to have that much amount in acount. Too much of hassle.

[@chaurasia_dk]

If I sell some stock today and immediately buy it, I think it's then considered as intraday trading and taxation is totally different for intraday, right? It will not be considered in LTCG/STCG. Please explain!

[@shubhamqweasd]

if you buy as long term and sell immediately/same day, its not considered as intra day trading. You need to pay full margins upfront.

[@akshay86523]

No, this would not be considered intraday trading. Intraday trading refers to buying and selling a stock within the same trading day. In this case, you're first selling a stock that you’ve held for more than a year, and then immediately buying it again. This transaction would be considered a fresh acquisition, not intraday. "Buy and Sell on the same day" → Intraday "Sell and Buy" (assuming you’re repurchasing a stock you sold after holding for a year) → Not Intraday

[@RohitSurw]

Intraday would be considered for buy and sell, not sell and buy, right? Also Shubham's point is valid.

[@utkarshdeepak]

Intraday would be considered irrespective of buy first or selling first.. If buying and selling is done on the same day for stock then it is considered as intraday. I have personally thought that it would not be considered as a intraday and ended up paying intraday charges.. So if you want to tax harvest stock then sell today(T) and buy tomorrow(T+1).

[@chaurasia_dk]

@@RohitSurw my assumption was also similar to what you guys are saying and tried tax harvesting in March this year but it didn't work I checked with customer support and they told same as my comment. I have experienced it hence tried to confirm again

[@RajveerSingh-vf7pr]

loss harvesting. even if some share shows loss, but you are hopeful that this share is the one i want to hold, (or some different share you wanna buy) you can set off the long term capital loss against LTCG, to further reduce your taxable gains.

[@SatyamRaina]

Very informative, thank you

[@AnikitSahni]

This is fine for initial years but as the corpus grows say in year 6-7 .. It might not be really practical to have that amount in liquid to actually sell all and buy that big an amount while waiting for the sells to settle in the bank in 2-4 days time. Is there no better and practical way to do this ?

[@RohitSurw]

You just need to sell enough stocks/MFs that you would realize around 1.2l profit. No need to sell everything.

[@sahil47]

​​@@RohitSurw you will need the money someday for consumption. Why else are you investing? To die with 10 cr in bank? I hope not and then you will end up paying the tax for the same amount /profit from your initial amount. This is delaying tax , that's all

[@atulkgadekar]

I asked this questions to many but nobody answered me, hope to get answer from you. Question: I'm salaried person having income only from salary and then I do tax harvesting by selling my mutual funds (Applicalbe for LTCG) in any FY less than 1.25 lakh so while filing ITR, do I need to file ITR2 and mention above realised profit or not and File ITR1 as anyways I need to pay 0 LTCG tax. Please answer my question.. Thanks.

[@NitinMarwal]

I believe its ITR2 to declare your MF sale and purchase transactions .. and if you do intraday in stocks then you have to file ITR3

[@ketkiambulkar9394]

Thank you for the video. Can you make videos on investment on children's education and marriage

[@ankitroy4874]

So if I am doing an sip or even lumsum investing every other month in a mutual fund/etf/stock , I am putting the money in the same product(stock/mf/etf). So does the broker keep track of how many units I had before an year. Because I may put my money in on. Dec24' and do this harvesting on Jan25.

[@somakroy]

Yes, all brokers keep a track of buy/sell statement, you can get the exact purchase dates from there.

[@ssyoagesh]

In my opinion, don't over complicate things by doing tax harvesting. just invest, follow-up the investments, redeem when needed and pay the TAX! Keep it simple. That's it.

[@funbegins2371]

one needs to have some decent moolah for doing this, not worth it for the middle class to do this.

[@ganeshpai8095]

Ek dum sahi baat bro

[@ShubhamThakkarShubhavatar]

Asli ID se aao nirmala

[@nomeshg]

​@@ShubhamThakkarShubhavatar nice comment

[@Rahulkr3004]

​@@ShubhamThakkarShubhavatar🤣🤣 Nice one

[@ninadwrites]

Awesome stuff man! You guys have actually disrupted the finfluencer space with such great content, I simply can't stop binging around

[@potatorevolution8849]

₹1.25L exemption limit is there even if we don't invest back, right? 😅

[@vinaykumar00731]

What about charges of selling and buying , change in the expense ratio of a mutual fund, we have to keep that in mind too

[@saisagarugiri]

1.25L per financial year? Can I get 1.25 L benefit if do sips

[@pritishparihar6752]

I was also planning to go into Agriculture and Zero1 video popup, lmao.

[@sandeeprana8708]

Please make separate episode on tax harvesting for sip investers

[@iamrajatgoyal]

Groww has a feature of segregating long term gains vs short term gains in mutual funds. Zerodha should copy this.

[@compiled.7641]

Buying same day would be considered as Speculative income??

[@issu264]

in the case of SIP's u complete the SIP for 2 years, then sell the units been held for a year, and repeat it every year by selling the total units of one year.

[@bhaveshverma302]

can you explain how to sell units held in last year in your case, since investment apps don't show date of units alloted while redeeming. there is option to enter units while redeeming.

[@tkdevlop]

Which mutual funds keep track of this tax stuff?

[@vigneshramanathan6108]

2:27 Question 2 Let’s say I sell a stock and reinvest in another stock does it considered as tax harvesting? Can I get some more detail on how we do tax harvesting like sell on one asset MF and reinvest in FD or on the Same instrument ?

[@kasim7929]

If taxable capital gain is under that 1 lakh limit then yes, if more you'd pay tax on gains

[@prasanjeetgupta9360]

Yes, you can enjoy tax harvesting, but your money won't compound in that particular stock

[@investingmantra6076]

This was very nice explanation

[@Zero1byZerodha]

❤

[@amansinghchauhan1142]

I want peace in my life. I won't do this tax harvesting. There should be an automation for this.

[@nirmalkumarselvaraj3996]

It is not clear how it saves for me for example: I am selling stocks worth 10 lak and buying again stock worth 10 lak for that I would have stayed invested right? why should I do this in the first place? please explain

[@somakroy]

For stocks you have to sell it as delivery, intraday trading will not help in tax harvesting.

[@kasim7929]

You're saving around 1 lakh each year which otherwise had gone to tax payment at the time of final withdrawal amount. No matter how big the amount had become.

[@nirmalkumarselvaraj3996]

@@kasim7929 Anyhow, on the final resale, I need to pay the tax, right? So how does it reduce my tax? The tax I need to pay for this year is zero in both cases, right?

[@jeeiee_com]

Hey Tech Developers! You're always asking for ideas on Reddit, right? Here's a golden opportunity: build a SaaS to automate this tedious reinvesting task. Since customers are already saving, they will definitely pay a yearly maintenance charge. I've given you the idea-now it's your turn to create automation using APIs and more. Stop scrolling and start shipping! Right Now.

[@rtuafhkjsgjydhku]

bro its one day task (out of 365 )less than 10 minutes , no one will pay for

[@rishabhrawatt]

That won't work on sips I guess cause if you sell mutual funds in every month you have to give exit load and lots of penalties stuff

[@Zero1byZerodha]

For tax harvesting with SIPs, you need to sell only the units that have completed one year in your holdings. This way, you avoid exit loads and can effectively use tax harvesting. Check it out here 4:50

[@rishabhrawatt]

@@Zero1byZerodha कितनी गणित लगानी पड़ेगी🤦

[@unknown3833]

​@@Zero1byZerodha please be clear that tax rate explained is only for Equity. Tax rate for Debt, international(Nasdaq 100,s&p 500) MF is as per tax slab.

[@Kukugmhg651]

For elss fund??

[@रूहदारहिंदोस्ता]

Good show boss ❤❤❤

[@Zero1byZerodha]

Thank you!

[@khatriatul]

NIrmala Tai is anyway going to hike LTCG to 25 percent gradually. 1/4th of your whole goal amount will be govt's.

[@gaurav.anirbandutta]

My broker app takes 2 days to allot NAV units in my SIP

[@sandeepm2047]

Nice video

[@Zero1byZerodha]

Thank you ❤

[@ehtramali1767]

5:49 what is redemption NAV?

[@vigneshramanathan6108]

@@ehtramali1767 when you buy the nav would be for example ₹50 but after 5 yrs or so the Mutual fund would have gained some value and current nav would be ₹70 and if you sell now it is you redemption nav ₹70

[@srinidhiravi7375]

Anyone serious about investing will always harvest profits like this, and if you are like me, you even harvest Short term losses! Also a trick if you have a blood relative's account - stock you sell in one account can be immediately bought in other account at same price. With just one account, you have to wait for next day to buy, buying same day will be considered intraday activity!

[@hphade96]

Checklist to save tax on stock market gains: 1. Hold investments over a year for tax benefits. 2. Keep gains within 1.25 lakh LTCG limit. 3. Consider brokerage, taxes, and other costs. 4. Sell SIP units held for over a year. 5. Be aware of market conditions for selling and repurchasing.

[@Zero1byZerodha]

Thanks for sharing that with everyone here :)

[@BeingNewUser]

7:52 bro it’s only 20% of your wholesome you sold off, as 80% will be credited instantly!! So in this example you need only 1.12 lakh but not 5.6 lakh!!

[@sankuM]

interesting...!!

[@somakroy]

For stocks that will work but not for mutual funds

[@ShailendraNaikwadi]

Suhana khan..... Daughter of Shahrukh Khan laughing in corner 😂😂😂😂

[@tsp7234]

The last part of you throwing garbage openly is not good. You are a good person imparting good knowledge should not promote such things. Keep your country Clean.

[@amiirshad]

❤ da content.

[@appengg378]

Good videos ❤

[@Zero1byZerodha]

Thanks for your love 😇

[@SmartWizzard]

ahaha ha this video seems to be at the right time at right place 😁😁😅

[@Onlyabhi9]

its very minor..but we still end up paying lots and lots of tax

[@wazedali6182]

Like those who don't come under tax slab😂

[@Sking_28]

tell ppl about cross offset is not possible, like ltcg offset with stcg

[@chilpeeps]

Tax like Europe service like somalia Won't be nav price go up

[@AnishKumar-ss8lj]

lol, what about the expense ratio. And what about the GST

[@AkashKumar-ho3hp]

Returns from mutual funds already account for the expense ratio, and there's no GST on their purchase or sale. A better question to ask would be about STT and other taxes, as well as exit loads. If you had done your research, you'd know that STT and other taxes are minimal (₹0.5 per ₹10,000 investment), and most mutual funds only have an exit load for up to a year. Plus, since LTCG only applies when you sell after a year, exit loads are hardly a concern. Based on the cluelessness of your comment, it's clear that your knowledge of finance is extremely limited, and you have an unjustified bias against this KZbin channel. Maybe they’re trying to help people like you, but you’re too busy misunderstanding to appreciate it.

[@ashwinikumarkishan7453]

I don't understand farming supposed to be the best work

[@bharathgopalakrishnan3739]

From office to farm. Eager to see what else you guys will cook up for the next videos 😀

[@bharathp9135]

Just to explain tax harvesting you didn't have to put farmers in a bad light. After being hungry for a day, I don't think anyone would think of tax, money or stock market. Please be mindful of your words and actions in your content as you are gaining momentum on youtube. Being a financial literacy preacher, please be inclusive of all sects of our society 🙏

[@Ryan_online]

emergency fund or liquid cash pe dhyaan gaya to woh paise bhi gaye samjho ..... kaam tamam ... khatam ...tata ...bye bye

[@syedsharukh4995]

Think like the rich. Never sell ur mf units . Hold them forever. Take a loan against ur units if u need cash . That way u never pay tax

[@0nlypets_world]

1% exit load

[@Zero1byZerodha]

When you sell mutual funds after one year for the purpose of tax harvesting, you won't have to bear an exit load, as the maximum exit load period is one year.

[@nandakumar3129]

nice

[@mokshasrimelodies6806]

And loose exit load of 1% and make coin rich.

[@vigneshramanathan6108]

5:50 Question 1. Let’s say I put sip on a mutual fund for over 10 yrs till last month (I.e sep 1024) and got units for last month. now this month I make a sell order for 1 unit which unit will get sold like some older units I bought or the unit that got allocated to me last month This is important as if the unit from last month is sold it will have exit load and STCG

[@jayantadutta29]

It's always first in first out, the older ones will be sold first

[@sankuM]

kyun lekin samjh nhi aaya..! 😖

[@cocchamp1473]

Farming is better 😂😂

[@Boyinthecircle]

Kuchh samajh nhi aya

[@akarshanraj5125]

Much complicated… 1st episode which I don’t like

[@randomstranger7989]

This type of tax harvesting should go. This makes investing complex. Instead of this benefit, govt should reduce LTCG, why make a simple thing complicated

[@tusshargupta99]

Bkwas cheez h

[@sankaranarayanan616]

Please don't litter! 😢

[@kachuauhcak]

it's a biodegradable apple. actually good for the environment.

[@sankaranarayanan616]

@@kachuauhcak if all people take this logic and litter in tons, even though they might be biodegradable, it will end up nasty... Don't litter please

[@hey.shad0w]

Just tell me how can I withdraw those 1 year gains from the mf.. I will figure out the rest! 🫡

[@Zero1byZerodha]

Just log into your mutual fund account or the platform where you invested, select the fund, and hit 'redeem' for the amount you want to withdraw. Simple!

[@wazedali6182]

Like those who don't come under tax slab😂