How long term share considered that is accumulted gradually?

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Hi,

I have a small query regarding step by step accumulated share comes in short or long term.

If a share A has been bought in 2009, and bought some more share now in OCT 2011.
Now how it will be considered if it is been sold in next 12 months?

Thanks,

Sakitram

Replies (5)

FIFO method would be followed i.e. shares bought in 2009 will be deemed to be sold first

same message put in the reply with more formatting

 

Here is the transaction details.

Share Units Date/time Transaction
ABC 100 01/01/2009 BUY
ABC 100 01/10/2011 BUY
ABC 150 01/11/2011 SELL

For this scenario, the tax charges will be as follows as per the above comment.

First 100 units - No tax (STT paid + transaction done only through stock exchange)

Next 50 unis  - 15% tax (STCG).

Am I right?

yes you are right !

Thanks Ashish.

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