How to calculate stcg

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to calculate Short Term Capital Gains (STCG) when selling shares. The primary method used is First-In, First-Out (FIFO), meaning the cost of acquisition for sold shares is based on the earliest purchase price. The conversation also touches upon whether intraday trades or specific contract details might affect the cost of acquisition calculation.

PRIYA

PRIYA (Querist)

12 December 2021 I had purchased 100 shares of a company on 10th January 2020 for Rs 50. I purchased 200 shares again of the same company on 1st Feb 2020 for Rs120. I sold 100 shares on 2nd Feb 2020 for Rs 140. What will be the cost of 100 shares sold on 2nd Feb 2020, will it be 120 Rs or 50 Rs?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

13 December 2021 I think FIFO (first in first out) is used, so ₹50. Not sure if any other valuation method could be used.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 December 2021 No other method used. Its FIFO only; COA will be Rs. 50/- & STCG will be Rs. 90/- per share.

Message likes : 1 times

PRIYA

PRIYA (Querist)

13 December 2021 Out of the 200 shares bought on 1st February 2020, only 100 are credited in demat account. Also there is no debit entry in demat account of 100 shares sold on 2nd February 2020. Does this make any difference in deciding the cost of acquisition?

PRIYA

PRIYA (Querist)

14 December 2021 Out of the 200 shares bought on 1st February 2020, only 100 are credited in demat account. Also there is no debit entry in demat account of 100 shares sold on 2nd February 2020. Does this make any difference in deciding the cost of acquisition?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 December 2021 CHECK THE CONTRACT, IF IT IS FOR NET 100 SHARES ON 02/02/2020 WITH DIFFERENTIAL AMOUNT AS PROFITS, THEN 100 SHARES WILL BE TREATED AS INTRADAY SELL. OTHERWISE NO EFFECT.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now