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How to Calculate Short Term Long Term Capital Gain

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)

19 September 2009

Dear All,

Please tell me the way, how to calculate Short Term Capital Gain & Long Term Capital gain on share trading.

The things which i m having is datewise sale purchase of shares, how to calculate margin etc. and how to make sure to calculate exact amount of long term or short term capital gain. And how to see the profit for the month or Till date from share trading (if possible)

If any body has maintain some excel sheet please provide me.

Thanks

Praveen

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13 Replies

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 21 September 2009

No reply. :-(

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VARUN (PCC STUDENT) (523 Points)
Replied 21 September 2009

Capital Gain can be computed in the following manner ...

A. As in case of Short Term Capital Gain ...

Full value for Consideration XXX

(-) Cost of Acquisition XXX

(-) Selling Expenses XXX

STCG XXX

B. As in case of Long Term Capital Gain

(-) Indexed Cost of Acquisition XXX

(-)Indexed Cost of Improvement XXX

(-) Selling Expenses XXX

LTCG XXX

If u held the shares for one year, then it will be considered as Long Term. And as per sec. 10(38) if STT paid on that share then it will not be taxable... and otherwise LTCG is taxable at 20%.

STCG on which STT has been paid then it will be taxable at 15% ... otherwise it will be taxable at slab rate ...

Regards

Varun Makhija

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 21 September 2009

Thanks Varun for your sweet reply.

but my question was not that, what you replied.

my question was, i have no software etc. to claculate how much is my short term capital gain, how much is my long term capital gain. etc.

i need to make inventroy type records for balance stock in hand and how much i have earned during the year, whether it was long term or short term. any excel working etc. would work.

if you have something like that pls share with us.

Thanks

PRaveen

VARUN (PCC STUDENT) (523 Points)
Replied 21 September 2009

no, i have not that kind of sheet ... but u can prepare on excel sheet ...

vikaskamra (CA Final Student) (132 Points)
Replied 21 September 2009

if the long term capital gain is in shares i.e. share were held for more than one year its exempt from tax

and short term capital gain is calculated by deducting the sales proceeds with the purhase price and taxed at 15%

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VARUN (PCC STUDENT) (523 Points)
Replied 21 September 2009

yar ye sab to main upar bata chuka hun ...Praveen ji ko koi format chahiye jisse wo capital gain calculate kar ske ...

Chinnappan D M (Consultant) (96 Points)
Replied 20 October 2009

Originally posted by :VARUN
"	Capital Gain can be computed in the following manner ... A. As in case of Short Term Capital Gain ... Full value for Consideration XXX (-) Cost of Acquisition XXX (-) Selling Expenses XXX STCG XXX B. As in case of Long Term Capital Gain (-) Indexed Cost of Acquisition XXX (-)Indexed Cost of Improvement XXX (-) Selling Expenses XXX LTCG XXX If u held the shares for one year, then it will be considered as Long Term. And as per sec. 10(38) if STT paid on that share then it will not be taxable... and otherwise LTCG is taxable at 20%. STCG on which STT has been paid then it will be taxable at 15% ... otherwise it will be taxable at slab rate ... Regards Varun Makhija	"

Mr Varun

your replies are very clear and to the point. I just wanted to know where do we get the indexed cost of Aquisition and improvement for properties bot before 1981 and improved after 1981. Any source where I can get indexed cost detail.

Chinnappan D M

VARUN (PCC STUDENT) (523 Points)
Replied 22 October 2009

provide me ur email id I wil mail u the format .. or u can search that on this site also .. koi na koi information to mil hi jayegi aapko ...

my email id is makhija.varun4 @ rediffmail.com

With Regards

Varun

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 23 October 2009

Thanks Mr. Varun for your kind reply.

Please note my email id

praveenpammy @ gmail.com

Thanks

Praveen

RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 27 October 2009

PLEASE FIND THE REQUISITE SHEET ATTACHED.

AND DO LET ME KNOW IF IT PROVES FRUITFUL OR NEEDS SOME AMENDMENTS.

REGARDS,

CA RITESH KOTHARI

Attached File : 11 share trading profit.xls downloaded: 425 times

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PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 27 October 2009

Thanks Alot Mr. RITESH KOTHARI ,

S.NO.	PARTICULARS	DATE OF PURCHASE	DATE OF SALE	DURATION HELD	PURCHASE COST	SALE PRICE	GAIN	STCG	LTCG
1	RELIANCE	08-05-08	08-10-09	518	156.00	250.00	94.00	0	94
2	RELIANCE	08-05-09	08-10-09	153	156.00	250.00	94.00	94	0

column you have provided is good that from this we will be able to know if holding period of share is more or less than 365 days. this is OK.

thanks for giving us the example, this is the best simple way we can calculate, we can also add quantity column also so that we can get how much balance shares are there in hand.

Thanks again.

Praveen