The 2018 Indian Budget introduced a long-term capital gains tax of 10% on stocks and equity mutual funds exceeding Rs. 1 lakh. However, all gains until 31-Jan-2018 are grandfathered. This means that you will have to pay tax ONLY on the gain from the base of highest price on 31-Jan-2018.

Grandfathering calculations get complex when there are one or more corporate actions in your long-term holdings. The recent major update of MProfit has simplified the calculation of capital gains as per the Grandfathering clause for all transactions (including multiple corporate actions such as bonus, split, merger and demerger).

MProfit automatically calculates the long-term capital gains and provides reports in different formats including Summary and Detailed views with all details such as Purchase Price (PP), FMV and Cost of Acquisition (CA) accurately calculated and displayed for each transaction.
MProfit has, over the years, perfected the calculation of capital gains and made it extremely simple for users to use this information while filing their tax returns.

Salient features of MProfit specific to the calculation of capital gains include:

• Calculation of capital gains based on First-In-First-Out basis (FIFO) and as per Grandfathering clause
• Intra-day, short-term and long-term capital gains calculations for stocks
• Short-term and long-term capital gains calculations for equity & debt mutual funds as well as for traded bonds
• Long-term capital gains calculations for debt mutual funds with or without indexation
• Adjustment of capital gains calculations as per income tax rules for corporate actions such as bonus, split, merger and demerger
• Feature to allocate contract note charges to purchase amount and sale amount for stock transactions to reduce the tax liability
• Summary and detailed formats available for capital gains reports
• Transaction-wise capital gains report with all details such as Original Purchase Price (PP), FMV (highest price as on 31-Jan-18) and Cost of – Acquisition (CA) as per grandfathering rules
• Unrealised capital gains reports that help users manage “actual” capital gains
• Holdings reports that track the number of holding days of stocks and mutual funds since the purchase date

Below is a list of useful posts to help you know more about how MProfit manages capital gains calculations:

Forum post:
Summary and Detailed Capital Gains Reports as per Grandfathering rules

Blog Posts:
Capital Gains Calculations simplified with MProfit
Capital Gain Calculations for Shares (Stocks)
Capital Gain Calculations for Mutual Funds (MF)
A video tutorial on Capital Gains Reports