What is Tax-Loss Harvesting?

This one’s for investors — especially those in mutual funds or direct equities. 📉 When you have a stock or mutual fund that’s in the red (i.e., loss-making), you can sell it intentionally to realize the loss. 📈 That realized loss can then be used to offset capital gains you've made elsewhere — reducing your taxable income. 🧾 Example: You made ₹1,00,000 profit on one stock You made a ₹40,000 loss on another Use tax-loss harvesting → You now pay tax only on ₹60,000 gains! 💡 Important: Can only be used with taxable accounts (not in ELSS, PPF, etc.) Works best if you rebuy the same asset later, but be cautious of the "wash sale" rule (in some countries). Always consult a tax advisor for compliance.