Mastering Capital Gains: Legal Tax Saving Strategies & Long-Term Stock Investment

Join me as we dive into the world of tax-efficient investing and uncover strategies to maximize your gains, from capital gain harvesting to optimizing your portfolio's performance.

Here are 20-24 clean bullet points summarizing the video:
* The video is about mastering money management and building long-term wealth
* It will cover topics such as tax-efficient investing and capital gains
* In India, if you sell a share within three years of buying it, it's considered a short-term capital gain
* Short-term capital gains are taxed at the investor's income tax slab rate (up to 125,000)
Long-term Capital Gain Example
* Suppose you buy shares worth ₹1 lakh and sell them for a profit after one year (₹2 million)
* You won't have to pay taxes on this long-term capital gain
Tax Harvesting Example
* Let's say you bought SEM shares for ₹1 lakh and sold them at ₹1 lakh on March 10, 2024
* This is a short-term loss, which can be used to offset future gains
Investing in Mutual Funds
* If you invest in mutual funds within 12 months, it's considered a short-term investment
* You won't have to pay taxes on these investments until you sell the units
Example: Investing in Mutual Funds
* Suppose you invested ₹50,000 in a fundamentally strong stock fund from July 23 to July 24 (12 months)
* The value of your investment increased to ₹1 lakh by the end of the year
* You can book some profits and then hold onto the units for further growth
* Understanding capital gains tax rules can help you make informed investment decisions
* Tax-efficient investing can help you build long-term wealth
* The video will cover more topics related to money management and investing

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What are the tax implications when buying, holding, and selling stocks or mutual funds within a 12-month period, compared to longer-term investments? Feel free to share your thoughts in the comments!