Accounting and tax for share trading

Hello Everyone,

I want some help on "Accounting for a Person who do Share Trading the whole year" and also "Filing his Income Tax Return and Calculating Taxes STCG and LTCG".

While doing Accounting I Use FIFO Method in Calculating Stock.

But I dont know how to Calculate the Value of Closing Stock. I'm Confused.

I use Tally 7.2 and in this I cant allocate a Particular Share Buy/Sell transaction to a Particular transaction to calculate STCG and LTCG. it calculates automatically based on average rate.

Should I Export the Purchase and Sale Data to EXCEL and then Manually Calculate the Value of Closing Stock using FIFO in Excel and also STCG and LTCG. I can do that but it would be a tremendous work because there are a lot of transactions.

Also the Client is not satisfied by the FIFO Method because it doesnt shows him a meaningful or realistic picture of his Stock.

I may explain My View and his view by example:

Shares of Company A :

Opening Stock (OS) 100 Shares @ 52 = 5200

Purchase (P) 40 Shares @ 80 = 3200

Sales (S) 60 Shares @ 62 = 3720

Closing Stock (CS) 80 Shares

Now as per FIFO I will calculate it as

CS 80 Shares consists of 40 (OS) @ 52 = 2080 + 40 (P) @ 80 = 3200, i.e. 80 Shares of Rs. 5280/- and the average rate is 5280/80 = Rs. 66

Equation : CS +S - OS - P = GP

5280+3720-5200-3200=600 Profit

And The Client says how can I do my next transaction on the basis of this rate of Rs.66. Because this is wrong rate.

His Calculation is:

Bought 100 for 5200 & 40 for 3200 thus 140 for 8400 during the year i.e. 8400/140=Rs.60

He bought more shares to reduce his average cost. so he can sell at a lower rate too.

Now he sold 60 Shares @ 62 = 3720 So his Profit is of Rs. 2 (62-60) = 60x2=120

And his Closing Stock is 80 Shares @ 60 = 4800

Equation : CS +S - OS - P = GP

4800+3720-5200-3200=120 Profit

And now he can sell the 80 Shares for anything above Rs.60

And I think what the Client is saying do holds Value. He is right.

So Kindly Guide me on how this Valuation issue. And Secondly on how to Calculate it - Manually in Excel or any short trick for it in excel or any Software available for FREE.

Thanks.