Tax Loss Harvesting in Zerodha| Meaning| How does it work?
Last updated August 22, 2026
This IPO News guide/article covers “Tax Loss Harvesting in Zerodha| Meaning| How does it work?”. The page is organized around what is tax loss harvesting?, types of capital gain taxation, how does tax loss harvesting work?, example 1: tax-loss harvesting on short-term capital gains, example 2: tax-loss harvesting on long-term capital gains. IPO News presents the structured facts and tables in its own layout and wording.
Topics Covered
- What is Tax Loss Harvesting?
- Types of Capital Gain Taxation
- How Does Tax Loss Harvesting Work?
- Example 1: Tax-Loss Harvesting on Short-term capital gains
- Example 2: Tax-Loss Harvesting on Long-term capital gains
- Tax-Loss Harvesting Rules or principles
- Tax Loss harvesting report in Zerodha Kite
- Steps to download the tax-loss harvesting in Zerodha Kite via Console
- Tax-Loss Harvesting: Final Verdict
- Zerodha Trade@20
- Frequently Asked Questions
- 1. What is Tax loss harvesting in Zerodha and where can I get a report?−
- Compare Stock Brokers Side-by-Side
Key Facts
- India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
- Short-Term Capital Gain (STCG): Profits made by selling stocks or equity mutual fund units held for less than 1 year are called STCG. As per the taxation rules, STCG attracts 15% of the tax rate.
- Suppose, you have made a short-term capital gain of Rs. 1,50,000 in a financial year, then without harvesting, your tax liability will be as follows;
- = Rs. 1,50,000 – Rs. 60,000
- Investor’s net capital gain has been reduced by 60,000 and reported at Rs. 1,10,000, on which 15% tax is applicable such as follows;
- = Rs. 22,500 – Rs. 16,500
- So, the net difference between tax payable without and with harvesting is Rs. 6,000 which means that tax-loss harvesting helps to reduce capital gain tax outgo by Rs. 6,000.
- Suppose an investor has earned LTCG of Rs. 4,00,000, so without taking harvesting advantage, the calculation of tax payable will be as follows;
- = Rs. 4,00,000 – Rs. 100,000
- LTCG Tax (Without Harvesting) = LTCG *10%
- = Rs. 400,000 – Rs. 100,000 – Rs. 1,20,000
- = Rs. 30,000 – Rs. 18,000
- Thus, in that case, tax-loss harvesting has reduced the net LTCG tax payable liability by Rs. 12,000
- Want to start your investment journey? Join India's Pioneer Discount Broker – ZERODHA – Free Delivery Trade, Maximum Rs 20 for F&O and Intraday, Free Direct Mutual Fund investment.
- 10 Best Mutual Fund Apps for Investors in 2025
Source record: View original public source ↗