What Tools Automatically Optimize Tax-Loss Harvesting for Indian Investments? 2026 Guide

Tax-loss harvesting allows Indian investors to offset capital gains by strategically selling underperforming assets, reducing tax liability on profitable investments while maintaining portfolio exposure through strategic rebalancing.

Tax-loss harvesting represents a strategic approach to reducing capital gains tax liability by selling underperforming investments at a loss and using those losses to offset profitable gains. As of 2026, Indian investors face short-term capital gains (STCG) tax at 20% for equity held less than one year and long-term capital gains (LTCG) tax at 12.5% (with ₹1.25 lakh exemption) for holdings beyond 12 months [3].