FIFO basis for Cap Gains on shares

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Chinmay Kamat (Querist)

22 September 2009 Hello friends,

Suppose I wish to show all my trading gains/losses under the head capital gains and that I have the following Information for Opening stock, Purchases and Sales in MS Excel:

Dates of purchase/sale, Quantity and the total amount.

We know that as per CBDT circular we are supposed to determine whether the transactions are long term/short term on FIFO basis. This will significantly affect the tax implications..

My question is how I can find out whether the transactions are LT/ST based simply on the dates and quantity. I want to know if the process can be automated in excel or any other software. I have been trying to find a solution for quite some time and cant find any formula or method in excel...

Thank You

Krunal Raichura

Krunal Raichura (Expert)

01 October 2009 You can come to know whether the transaction is ST or LT by the help of dates, prices and quantity. You can refer to the Accounting text book of CA, where they have given examples of questions of sale and purchase under FIFO system. Use similar methodology for your transactions.

Some of the broerage houses, provide system generated reports to their clients. So you can also check up with your broker.

Chinmay Kamat

Chinmay Kamat (Querist)

01 October 2009 I know the mechanism of the calculation. I just dont know how to do it AUTOMATICALLY in excel without my intervention.

Krunal Raichura

Krunal Raichura (Expert)

02 October 2009 In excel, a standard format with all formulas inserted can be made and updated regularly. Contract Notes may be linked out there.

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