Quick Answer: Tax harvesting in India (2026) is a legal strategy where investors sell underperforming investments to create capital losses, which offset capital gains and reduce tax liability. It helps lower LTCG tax (12.5% above ₹1.25 lakh) and STCG tax (20%) on equity investments.

Tax harvesting in India is gaining popularity.Investing wisely is great, but taxes can eat into your profits—especially on stocks and mutual funds. Tax harvesting (also called tax loss harvesting) is…