For STCG on equity shares

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157 Points Posted on 19 December 2021
Which method is acceptable in Income tax - FIFO or Weighted Average for calculating Short Term Capital Gain on equity shares
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On 19 December 2021 at 10:10 Report
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When calculating Short Term Capital Gains (STCG) on listed equity shares for income tax purposes, the FIFO (First-In, First-Out) method is the acceptable approach. This method is outlined in Section 45(2A) of the Income Tax Act. If Securities Transaction Tax (STT) has been paid, STCG is taxed at a rate of 15% under Section 111A.

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90 Points Posted on 19 December 2021
For computing STCG on listed equity shares FIFO method is used (You can refer Sec 45(2A)). STCG @ 15% if STT is paid, shall be taxed u/s 111A.
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On 19 December 2021 at 11:43
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157 Points Posted on 19 December 2021
Thank you Sir
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On 19 December 2021 at 11:45

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