Short Term Capital Gains : Shares

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

Calculation given above is proper & correct.

Short capital gain will be as per abv calcln..

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..

Yes all the above calculations are correct. Accounting as per FIFO basis

Can we option to choose the cost of 50 shares as Rs20/-  and 10 shares @ Rs.10/-.

AMIT