Saving in tax can be done by selling shares again and again
If you are also associated with business and you also pay tax, then this news can prove to be of great use to you. Today we will understand a rule related to the cleverness of tax harvesting. You know that you can save tax by repeatedly selling shares or mutual fund units, but you also need to calculate the SPEND. When you sell shares or mutual funds repeatedly, you have to pay various charges like brokerage, STT, stamp duty etc.
These costs can be very modest. But this can reduce your amount by only 1 to 1.5 percent, so experts say that before taking any decision, take a decision only after carefully calculating the cost of tax, harvesting, savings and fees etc. Also you should have enough cash in the process. This is because when you sell the shares, the money comes into your account on the third day. But you have to buy the shares again the next day. So you should have enough cash to buy shares before the money comes in.