How is the buy average of the stocks purchased is calculated in comet or in Jainam Pro 2.0 at Jainam?

How is the buy average of the stocks purchased is calculated in comet or in Jainam Pro 2.0 at Jainam?

  • As per the Income Tax act, it is mandatory to calculate profit and loss on sale of securities by using FIFO method only.
  • Under FIFO (First In, First Out) method, it is assumed that shares that were purchased first will be sold first from the account.

RELATED FACTS: -

  • The buy average calculation of Holding does not include Intraday trades.
  • If the holdings are sold and bought back on the same day then, the Buy average of the holdings will remain same and the profit or loss on such sale will be regarded as intraday profit/loss.

FOR EXAMPLE: 

Trade date

Scrip

Trade

Qty

Rate

Buy average

Calculations

25-12-2023TCSBuy40300300
27-12-2023TCSBuy20280293.33(40*300)+20*280)/40+20=17600/60=293.33
28-12-2023TCSSell30320286.67

(10*300)+(20*280)/30=8600/30=286.67

as per FIFO, 30 qty bought on 25-12 in first row.

29-12-2023TCSBuy50270200.9(10*300)+(20*280)+(50*270)/110=22100/110= 200.9