It is that time of the year when you need to book your fucking losses to make some money! YES you read that right. It's March, end of financial year. Once we cross March 31st we need to pay tax on a the short term capital gains made last year. We tend to do a lot of profit booking but we hold on to stocks that are loss making. So we end up paying tax on all the profits generated and we make more losses on our loss making investments by holding on to them. That is double loss!
So book your losses adjust it against the profits and then pay tax only on net profit. Save lot of money and thank me someday :)
Note that you can offset your short term capital gains only with short term capital loss and not with a loss in a long term investment. But still this is a good time to review those long term loss making investments also and dump them down the drain where they belong ... unless you are in love with the psychopath who has kidnapped your portfolio and is one day going to shoot it down. And unless you are harley quinn "daddy's little monster" I suggest you you look for these little monsters in your portfolio and weed them out .. and reduce your tax outgo by doing the same before 31st March in the next 5 days
So book your losses adjust it against the profits and then pay tax only on net profit. Save lot of money and thank me someday :)
Note that you can offset your short term capital gains only with short term capital loss and not with a loss in a long term investment. But still this is a good time to review those long term loss making investments also and dump them down the drain where they belong ... unless you are in love with the psychopath who has kidnapped your portfolio and is one day going to shoot it down. And unless you are harley quinn "daddy's little monster" I suggest you you look for these little monsters in your portfolio and weed them out .. and reduce your tax outgo by doing the same before 31st March in the next 5 days
Pay your taxes
If you don't declare your capital gains, I strongly suggest start doing it else the taxman is surely coming to your door sometime soon (Aadhar, KYC, digitization and single view dashboard of all records, they can catch you easily if they want to). Modi and Jaitley are one of the smartest politicians and they know people are making money in the stock market and they would want you to contribute some of that back for Nation building (not unfair at all). So unless you are harley quinn and don't give a shit ..start declaring your short term capital gains religiously. Once you start declaring it, you would want to save on it. To save you need to book your fucking losses. And trust me you will gain much more by getting rid of these loss making investments using tax planning as an excuse to convince your heart into taking this difficult decision, than you would lose by paying your capital gains tax.
So let's do some accounting jugaad because in real life harley quinn is just a dream !
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