Section 112A LTCG Tax-Gain Harvesting
Save 12.5% tax on up to ₹1.25 Lakhs of equity gains every financial year by systematically resetting your cost basis.
Across mutual funds & direct stocks
Gains on equity held > 12 months (Check broker Tax P&L)
Realized long-term gains between April 1 and today
To calculate the compounding benefit of harvesting
If you harvest your ₹1.25 Lakh tax-free limit every financial year and let the saved taxes stay invested at 12% CAGR, you accumulate an extra:
- 1.Check your mutual fund or broker (Zerodha, Groww, etc.) 'Tax P&L' report for Long Term Capital Gains (units held > 365 days).
- 2.Place a REDEEM order for units having up to ₹1,00,000 in long-term gains before March 31st.
- 3.Immediately place a PURCHASE order for the exact same fund or another diversified fund to stay 100% invested.
- 4.Your capital gains are completely tax-free under Section 112A, and your acquisition purchase cost is officially reset higher!
Important: Section 112A applies on gains realized between April 1 and March 31. Unused limit expires on March 31 and cannot be carried forward!
File your ITR with this regime factored in.
The main NetCorpus India planner rolls this into a 50-year retirement plan alongside your loans, EPF, taxes, trips, and life goals.