Tax loss harvesting reduces income tax for investors

Tax loss harvesting allows investors to use stock market losses to reduce their income tax for the financial year ending March 31, 2025. This strategy is particularly relevant as many stocks have seen significant declines recently. Investors can offset losses against gains from other stocks, lowering their overall capital gains tax. If losses exceed gains, they can carry forward the excess losses for up to eight years to offset future gains. To benefit from this, taxpayers must file their income tax returns on time. Failure to do so will result in losing the ability to carry forward losses.