RupeeCase
Education . Personal Finance . 2 of 3
The worked example
Book a 60000 loss. The 20000 bill becomes 8000.
Booking the red position turns a 20000 tax bill into an 8000 one TAX ON A 100000 SHORT TERM GAIN . RUPEES 20000 sticker tax gain taxed whole 12000 saved by the 60000 loss booked 8000 what is left to actually pay Equity short term rate 20 pct . illustrative
A short term loss cancels both short and long term gains. A long term loss cancels only long term gains. Point the loss at the highest rate you have.
The rule under it
A booked loss is worth its size times the tax rate on the gain it cancels.
Tanmay Kurtkoti . Builder of RupeeCase
Source . Income Tax Act . 26 Jul 2026