MProfit gives separate capital gain reports for Equity MF and Debt MF, because taxation is different for both the types. When you create MF scheme for the first time, you need to assign it as Equity MF or Debt MF. Exchange Traded Funds (ETFs) are also included in MF list and you need to assign ETF scheme as Debt MF as capital gain calculations for ETFs are same as Debt MF. MProfit gives you two options for capital gains for Debt MF, one with indexation and one without indexation. If there is consolidation or splitting of units of mutual funds, capital gain reports are calculated based on the adjusted purchase prices.
MProfit follows First in First Out (FIFO) method for capital gain calculations. MProfit also takes care of Dividend Reinvestment in calculating capital gains. Dividend Reinvestments are considered as new buy transactions for that particular scheme. When you sell (Redeem) units, all new subscriptions (buys) and dividend reinvestment transactions are taken into account and as per FIFO rule, short term and long term capital gains are calculated. I will explain the same with example below:
|Date:||Type||Units||NAV||Amount||Short Term Capital Gain||Long Term Capital Gain|
|25- Apr-08||Div Reinvest||100.00||11.00||1100.00|
Here, the short term capital gain is calculated as Rs. 5200 on 15-Dec-08, because the cost of total 1050 units will be (10000 + 50*11) = 10550 and redemption (sale) value is 15750, and since this redemption has happened within 12 months of subscription (buy) of units, it will be a short term capital gain. Similarly, on 02-May-09, Rs. 450 is the long term capital gain as cost value is 50*11=550 (dividend reinvestment is considered as buy transaction) and redemption (sale) value is 1000, and redemption has happened after one year.