Fact-check notes
Last fact-checked: 2026-05-30
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. New Act, new section and new form references should be verified against official utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Tax loss harvesting means realising eligible capital losses to set off capital gains, but the strategy needs timing, asset classification and documentation discipline.
- Short-term and long-term losses have different set-off rules.
- Harvesting must be based on actual sale transactions and broker records.
- Repurchase timing should be discussed with an advisor to avoid artificial planning concerns.
- Loss carry-forward usually requires timely return filing.
Who this is for
- Investor with large equity gains.
- Mutual fund investor before March 31.
- HNI doing year-end tax planning.
- CA comparing gain/loss scenarios.
Documents and data to verify
- Portfolio holdings and unrealised gain/loss report.
- Realised capital gains statement.
- Prior-year carried losses.
- Trade confirmations after sale/rebuy.
Common mistakes to avoid
- Harvesting without checking STCG/LTCG bucket.
- Missing return deadline and losing carry-forward.
- Ignoring transaction cost and market risk.
- No evidence of actual sale.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.