Tax-loss harvesting can help you save tax and get liquidity at the same time. Here’s how you can take advantage:

Case 1: If You Need Funds in a Few Weeks

• Sell loss-making stocks or mutual funds now to book the loss and get cash.
• Use this loss to reduce tax on your capital gains (from other stocks, property, or mutual funds).
• If you have no gains this year, you can carry forward capital losses for 8 years to adjust against future gains.

You get funds now, plus a tax benefit!

Case 2: If You Want to Buy Back Next Month

• Sell your loss-making stock or mutual fund before March 31 to book a loss and save tax.
• Buy it back in April if you still believe in its long-term potential.

This way, you keep your investment while also reducing your taxable gains.

Note: Tax-loss harvesting has certain conditions. Please consult your CA or tax advisor before making any decisions to ensure compliance with tax laws and maximize benefits.