Journal P&L and Tax Reports
P&L, Tax report, Tax loss harvesting
- While there is no explicit regulation in India that disallows tax loss harvesting, in countries like the US, if stocks are sold and bought back within 30 days solely to reduce taxes, it is considered a "wash sale" and the tax offset is disallowed.
- In India, such wash sale rules don’t exist, but the Income Tax Department may scrutinise transactions where the same stock is sold and quickly repurchased for tax-saving purposes. To avoid potential tax scrutiny, it is advisable to consult a Chartered Accountant (CA) when filing income tax returns.
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