LSK11 (Engineer) (57 Points)
24 July 2009I have bought some shares (50) at Rs.10 each and then 50 shares again at 20Rs each. Now I wish to sell 60 shares after 6 months with the price being 70 Rs per share . How do I calculate tax on these ?
Should it be on (selling price * 60) - (avg cost per share * 60) or something else ?
Shobha Maheshwari
(M.Com CA final Student & CS final Student)
(103 Points)
Replied 24 July 2009
Short term capital gain on shares should be calculated on the basis of FIFO ( First in first out ) method.
Your short term capital gain will be as under if you sell at say Rs.70 :
SALE PRICE ( RS. 70 * 60 SHARES ) 4200
LESS: COST PRICE ( RS. 10 * 50 SHARES ) 500
( RS. 20 * 10 SHARES ) 200 700
SHORT TERM CAPITAL GAIN 3500
Kailash Sharma
(CA- Final Student)
(148 Points)
Replied 24 July 2009
Calculation given above is proper & correct.
Short capital gain will be as per abv calcln..
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 24 July 2009
HI
Sale Price -------------------------------------------------------------4200
Less: FIFO basis cost of acquisition(50*10)+(10*20)----700
STCG-------------------------------------------------------------------3500
Rate of Tax as per 111A 15% -----------------Tax--------------525 + EC..
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 24 July 2009
Yes all the above calculations are correct. Accounting as per FIFO basis
AMIT KUMAR GUPTA
(SERVICE)
(30 Points)
Replied 25 July 2011
Can we option to choose the cost of 50 shares as Rs20/- and 10 shares @ Rs.10/-.
AMIT
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