Tax Harvesting in Mutual Fund SIP

[17ysaurabh]

Hey guys, I invest monthly as SIP in mutual funds.
I'm aware of the Tax harvesting concept where we sell and buy the mutual funds after 1 year to save taxes up to 1 lakh capital gains in LTCG for lumpsum investments.

Is it possible to save taxes in SIP?
If yes, can someone explain how can it be achieved?

 

[nikhilchauhan]

This discussion is already going on at Ways To Do Tax Harvesting

 

[17ysaurabh]

I've checked. It doesn't answer my question.
I want to know if we can do tax harvesting for Mutual Funds SIP.

 

[Tanvi Patel]

Hey guys, I invest monthly as SIP in mutual funds.
I'm aware of the Tax harvesting concept where we sell and buy the mutual funds after 1 year to save taxes up to 1 lakh capital gains in LTCG for lumpsum investments.

Is it possible to save taxes in SIP?
If yes, can someone explain how can it be achieved?

Yes it is possible but compounding will be affect. It is best for stocks.

 

[rohit_20085]

Yes, tax harvesting is possible in mutual fund sip & no, compounding will not be affected. For equity MF, gain of upto 1lakh can be harvested yearly without any tax on gain. Just remember to sell only those units, which were purchased atleast 12 months before the selling date. For tax harvesting, place the buy & sell order on the same day before cut-off time, but you'll have to deposit the buying amount at the time of placing the buy order, which will be returned to you after your sell order is executed, as per the settlement cycle

 

[17ysaurabh]

Yes, tax harvesting is possible in mutual fund sip & no, compounding will not be affected. For equity MF, gain of upto 1lakh can be harvested yearly without any tax on gain. Just remember to sell only those units, which were purchased atleast 12 months before the selling date. For tax harvesting, place the buy & sell order on the same day before cut-off time, but you'll have to deposit the buying amount at the time of placing the buy order, which will be returned to you after your sell order is executed, as per the settlement cycle

Yeah, I found out that sometime back.
BTW I'm using the Kuwera app for tax-harvesting mutual funds. It makes it very easy.

 

[rohit_20085]

Yeah, I found out that sometime back.
BTW I'm using the Kuwera app for tax-harvesting mutual funds. It makes it very easy.

Me too using kuvera, but searching for it's alternative. If anybody knows any app with similar or better functionality (or atleast nearly similar), please share the same