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Tax loss harvesting calculator: losses against gains.
Enter the gains you have realised this year and the losses you could realise. The calculator applies the set off order and shows the tax saved and what is left to carry forward.
- Formula shown
- Free, nothing stored
- Share your result as a link
01How it works
In plain words.
A short term capital loss can be set off against short term and long term gains; a long term loss only against long term gains. The calculator uses short term losses on the 20% gains first, then on the 12.5% gains, then long term losses, and applies the Rs 1.25 lakh exemption last. Selling and buying back costs STT, brokerage and charges, so the net benefit subtracts them.
The formula
STCL: first against STCG, then against LTCGLTCL: only against LTCGTax = 20% x STCG left + 12.5% x max(0, LTCG left - 1,25,000)Net benefit = tax before - tax after - trading cost02Worked example
The default numbers, by hand.
Rs 2 lakh STCG and Rs 3 lakh LTCG: tax Rs 61,875. Booking Rs 80,000 of short term and Rs 50,000 of long term losses: tax Rs 39,625, a saving of Rs 22,250, minus Rs 1,000 of trading cost.
| Input | Value |
|---|---|
| Short term gains realised (STCG) | ₹2,00,000 |
| Long term gains realised (LTCG) | ₹3,00,000 |
| Short term losses you could book | ₹80,000 |
| Long term losses you could book | ₹50,000 |
| Market value of the positions sold | ₹4,00,000 |
| Cost to sell and buy back | 0.25% |
| Result | Value |
|---|---|
| Tax saved | ₹22,250 |
| Tax before harvesting | ₹61,875 |
| Tax after harvesting | ₹39,625 |
| Cost of selling and buying back | ₹1,000 |
| Net benefit | ₹21,250 |
| Loss left to carry forward | ₹0 |
03Key concepts
What to know before you use it.
Carry forward
Losses not used this year can be carried forward for eight assessment years, provided the return is filed by its due date.
Buying back
Buying the same shares back resets the cost and the holding period. Module 11.3 covers the trade offs and the questions to discuss with a CA.
Good to know
- Losses are booked at the price on the day sold; the market can move before the buy back.
- Short term losses are more flexible than long term losses because they offset both kinds of gain.
04Assumptions
What the calculator assumes.
- Listed equity with STT paid; rules for transfers on or after 23 Jul 2024.
- No cess or surcharge; no other capital gains or losses this year.
- Education only; not tax advice.
Sources, checked 12 Oct 2026
05Questions
Asked about the Tax loss harvesting.
Can short term loss be set off against long term gain?
Yes. A short term capital loss can be set off against both short term and long term capital gains.
Can long term loss be set off against short term gain?
No. A long term capital loss can be set off only against long term capital gains.
How long can capital losses be carried forward?
Eight assessment years, if the return of the year of the loss is filed on time.
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06Keep going
Learn the idea, see it applied.
More tax calculators
Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.