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Calculating tax when there are many portfolios of same fund??

Tax queries 340 views 3 replies

Hi

I have done a lot of research on this topic but I couldn't find anything so I am turning to this forum of professionals.

thing is that I have 2-3 portfolios of exactly the same fund for most of my mutual funds in which I invested, since I used two apps for investing last FY. 

Now consider this case:

I have 2 folios for axis bluechip fund - regular growth

folio 1: 200 units purchased sep2018

folio 2: 500 units purchased Mar2019

Now I redeemed 100 units from folio 2 (since I redeemed from app 2) on Oct2019. Now for tax purpose we consider that units will be exhausted using FIFO but if we consider both folio as identical then 100 units will be consumed from folio 1 and gain will be considered long term equity gain but if both folios are considered different for tax purposes then units will be exhausted from folio 2 and gain will be considered as short term equity gain.

So, I need your help figuring out how to calculate gain in such cases and How to apply FIFO here??

Thanks

Replies (3)
In depository system, the investor can open and hold multiple demat accounts and in that case investor having more than one security / Demat account, FIFO method will be applied account wise.
Refer Circular No.768 DT. 24th June 1998 for more details.

But I think case of having multiple Demat account is different from having multiple portfolios of same mutual fund, please correct me if I'm wrong?

Also, this will highly increase the load of calculating tax payable on new small investors.

Thanks for your help

Multiple folios are like different accounts. I think FIFO method will be applied Folio wise although they belong to same fund.


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