Markets are down.
Your portfolio is too.
Most investors will wait.
Smart investors?
They’re using this to cut taxes before March 31.
You have 7 days.
What’s at stake (Equity & Equity MFs)
Long term gains - 12.5% tax above ₹1.25L
Short term gains- 20% tax
₹5L profit = ~₹47,000 tax.
Here's how you can make use of the dip
1. Use your ₹1.25L tax free limit
Annually ₹1.25L of long term gains from equity / equity MF is tax free.
How to use it properly:
Sell in March (before 31st) to realize gains
If you want to stay invested, re-enter in April (next financial year)
Tax-free gains booked
Cost price reset
Future tax reduced
2. Markets down = Harvest losses
If your portfolio is down, you picked wrong stocks
You are sitting on unrealized losses
Use them.
Sell before March 31
Offset against your gains
Rules
Short-term losses → reduce ALL gains
Long-term losses → reduce only long-term gains
Example:
₹2L gains + ₹1.5L losses
Save ~₹30,000 tax
3. Big gains? Plan smarter
If you’ve booked large gains:
Property route (54F)
Bonds route (54EC for property sales)
These can significantly reduce or eliminate tax , if used correctly.
4. Don’t fall into this trap
Salary under ₹12L = zero tax (new regime)
But:
Equity gains are still taxable
87A rebate does not apply here.
7-DAY CHECKLIST
Before March 31
✅ Use ₹1.25L tax-free gains
✅ Harvest losses from market correction
✅ Offset high-tax gains (20%)
✅ Plan large exits carefully
✅ File ITR on time
Disclaimer - This post is for educational purposes only.Please consult your CA or tax advisor before taking any action.