rule wash sales rules that prevents investors from claiming a loss on stock sale if he buys replacement within 30 days before or after the sale however in india the investor can claim setoff if the buying and selling is done on a separate trading days also the sale of stocks is considered on the principle of a first infirst out basis buying and selling on the same day are treated as an intraday gain or loss and the loss cant be considered for a setoff investors in midand smallcap stocks look at ways to avoid being taxed on nonprofitable stocks said mr ambavat