New Delhi, March 24 -- With only a week remaining until the end of the current financial year, now is the right time for investors to book their unrealised losses to reduce the overall tax bill. Several investors may be sitting on losses this year, given the market correction over the last few months.

First, let us understand the tax rules for selling short term and long term investments. Short-term capital gains (STCG) on assets held for less than a year are taxed at 20% and long-term capital gains (LTCG) on assets held for over a year are taxed at 12.5% beyond Rs.1.25 lakh. By selling loss-making investments before 31 March, investors can offset the losses against STCG or LTCG from other investments, thereby reducing the taxable amount...