Capital Gains Calculations simplified with MProfit

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If you are looking for the most accurate and easy way to calculate your capital gains, you have come to the right place. If you invest in stocks, traded bonds or equity/debt mutual funds, you likely need to calculate capital gains for your intra-day, short-term and long-term investments. MProfit helps make this calculation process effortless for you.

You simply need to import a digital contract note received from your broker or mutual fund statement into MProfit and our software will take care of the rest! MProfit follows the First-In-First-Out (FIFO) method for calculating capital gains and also adjusts capital gains calculations based on corporate actions such as mergers, de-mergers, splits and bonus in accordance with income tax rules. After automatically performing all your capital gains calculations, MProfit also prepares reports in various formats to help you understand your capital gains.

With the simplicity and accuracy offered by MProfit, it is no surprise that MProfit is the preferred choice for everyone in the Indian investing community including Investors, Financial Advisors, Family Offices and Chartered Accountants.

Examples of the capital gains reports provided by MProfit include:
1. Summary reports (with period-wise computation for advance tax calculation)
2. Detailed transaction-wise reports
3. Debt mutual funds reports with and without indexation

MProfit further helps you understand your capital gains right before you sell your stock or mutual fund units by providing the following information:
1. Computation of unrealized capital gains
2. Holding reports (displays the number of days of your holdings from the purchase dates)

Below are several posts that explain in detail how MProfit handles capital gains calculations. Click the links below to know more:

Capital Gain Calculations for Shares (Stocks)
Capital Gain Calculations for Mutual Funds (MF)
A video tutorial on Capital Gains Reports

Also, if you don’t find your broker’s name in our list, do let us know at support@mprofit.in and we’ll make sure we add import support for your broker’s digital contract notes.

Download a free version by clicking the link here.

Comments

  1. NV Nathan says:

    I bought a plot for about Rs.28 lacs in 2005 in installments and took possession in 2013 and sold out at Rs.49.50 lacs in June 2017. What would be capital gain tax implications?

  2. There will be no capital gain tax. See the calculation below.
    Purchase Amount 28,00,000 (FY 2005-06)
    Indexed Cost 65,09,402
    Sale Amount 49,50,000
    Capital Gain -15,59,402

  3. I Bought a plot for Rs 15000/ in the year 1989 and sold it for Rs 24 lacs .What will be my capital gains Implications?

  4. If you sell this plot in FY 2017-18, here is the calculation
    Purchase Amount 15,000
    Indexed Cost 40,800
    Sale Amount 24,00,000
    Capital Gain 23,59,200
    20% Tax 4,71,840

  5. While calculating the capital gain, can the stamp duty and registration fee paid at the time of acquisition be added to the initial purchase value of the land and then indexation be applied?

  6. HOW YOU CALCULATED INDEXED COST.

  7. Yes, expenses such as stamp duy and registration can be added to the cost of your property and then you can use the indexation to arrive at the actual capital gains.
    Click here to know more about this https://www.valueresearchonline.com/story/h2_storyView.asp?str=200436

  8. MProfit calculates indexed cost for Debt MFs and Gold bonds as per the CII table. CII for each year is publised by the government.

  9. Giri Mudaliar says:

    Total acquisition cost of my house is 10 lacks in the year 1985.Want to sell in 2017 for 1 crore 20 lacks.
    What would be my capital gains implications.Please help.

  10. Here is the calculation:
    Purchase Amount Rs. 10,00,000.00
    Indexed Cost Rs. 27,20,000.00
    Sale Amount Rs. 1,20,00,000.00
    Capital Gain Rs. 92,80,000.00
    20% Tax Rs. 18,56,000.00

  11. cp narayanan says:

    i bought a property in 2009 for 18 lakhs and selling in 2017 for 36.5 lakhs and plan to put it in the purchase of a second flat
    will i have to pay capital gains tax

  12. Here are some of the links for information on saving capital gains on selling residential property
    https://goo.gl/vfFiJA
    https://goo.gl/79Q3Uh

  13. S.Rangarajan says:

    I and my wife bought a house jointly in 1985 for 45,000/- .
    we built first floor in 1994 for 2.5lac.
    We dont have any cash receipts for expenses incurred of construction materials now.
    We intend to sell it now for 1.3cr.
    Kindly advise us the CG implication & whether the CG could be divided between us & deployed seperately to avoid CG Tax.
    Both of us are IT assesse & Senior citizens.
    Indexation to be calculated on both Land & Building together or seperately.
    We bought as a building .

  14. Here is capital gains calculation:
    Purchase Amount Rs. 2,95,000
    Indexed Cost Rs. 8,02,400
    Sale Amount Rs. 1,30,00,000
    Capital Gain Rs. 1,21,97,600
    20% Tax Rs. 24,39,520

    Capital gains will be divided between the two if both are joint owners of the house. Indexation base year will be 2001-02 for both land and the building. Both can invest in approved schemes to avoid capital gains. Click here for some more information:
    https://housing.com/news/taxation-jointly-owned-property/
    http://www.rediff.com/getahead/report/how-to-pay-tax-and-claim-deductions-for-joint-home-ownership/20170125.htm
    http://www.livemint.com/Money/aPGoc9sC01uRIX9c9h2anL/From-a-tax-perspective-you-are-a-coowner-of-a-house-only-i.html

  15. S.Rangarajan says:

    Thank you sir.

  16. Ravi Prakash Mehrotra says:

    i hold 1000 shares in INDUS IND BANK.. bought as ALHPC later changed name to ALFIN co. Year of pur probably 1987 or 1988 intial sale by co pur price not known. participated in all rights issue and got bonus also , when given by co. how do I calculate CAPITAL GAINS if I want to sell.

  17. It seems that the capital gains in your case is all long term including the original purchase, rights and bonus with the assumption that the bonus or rights must have been allotted before one year. In such case, it will be considered as long term capital gains and you will not need to pay any tax. However, you will need to prepare the capital gains calculations for filing income tax returns

    MProfit makes it very easy to prepare your capital gains reports, for all transactions purchase, rights and bonus as per income tax calculations. All you need is date of purchase, price and date of bonus and rights.

  18. S.N. Sinha says:

    Does it provide turnover computations for F&O traders? How does it take data for sale and purchase of options and reconcile it? Do you have screenshot of the sample accounting method followed for option trades? If yes, please provide.

  19. MProfit does provide turnover report (Sec 44AB) for F&O trades.
    Please click link here to know more about how MProfit handles F&O trades
    http://support.mprofit.in/threads/how-do-i-manage-f-o-currency-commodities-trans-in-mprofit-and-tally-it-with-my-brokers-ledger.484/#post-801
    http://support.mprofit.in/threads/how-to-match-mprofit-ledger-and-broker%E2%80%99s-ledger-for-f-o-transactions.383/#post-571
    This can be better explained over the phone if you provide your contact number.

  20. I purchase a land on 2014 at Rs. 1250000/- and registration cost Rs. 150000/-, Municipal mutation cost Rs.35000/-,
    brokerage cost Rs. 30000/- as total cost of land accumulated is Rs. 14,65,000/- now I want to sold the said land Rs.19,00,000/-. What will be the capital gain I have to pay. Please calculate accurately and send my email address.
    thanks,

    swapan bose

  21. Here is the capital gain calculation based on information you provided with the assumption that it was purchased in FY14-15
    Purchase Amount 14,65,000
    Indexed Cost 16,60,333
    Sale Amount 19,000,00
    Long term Capital Gain 2,39,667
    20% Tax 47,933

  22. Hey , Suppose i have speculation/Intraday losses of Rs 30000 and Short term Gains of Rs 50000. What will be my tax implications !!

  23. Short term gain cannot be setoff against speculation/intraday losses

  24. r.subramanian says:

    i purchased a land for Ra16000/- in 1996 and sold forRs635000/ what is my capital gain taz

  25. Here is the calculation if the land is sold in FY 2017-18

    Purchase Amount 16,000
    Indexed Cost 43,520
    Sale Amount 6,35,000
    Long term Capital Gain 5,91,480
    20% Tax 1,18,296

  26. Rajeev Jain says:

    Hi, I sold two plots for 25 lakh (12.5 lakhs each) and purchased one flat of 12 lakhs in 2016. These plots were purchased in 2008 for Rs 7.5 lakh. I invested 7,50,000 in capital gain bonds. Am I still expected to pay any income tax on capital gain? If yes, how much and which ITR should I use for that?

  27. Here is the calculation if you have not invested the sales proceed in any capital gain scheme or flat.
    Purchase Amount 7,50,000 (FY 08-09)
    Indexed Cost 14,49,742
    Sale Amount 25,00,000 (FY 16-17)
    Capital Gain 10,50,258
    20% Tax 2,10,052

    Since you have reinvested some part in residential property and 7.5 lakh in capital gain bonds, your tax liability will be greatly reduced. Please get this verified from your CA. Click here to know more about these exemptions:
    https://cleartax.in/s/capital-gains-exemption-on-sale-of-land
    http://www.charteredclub.com/section-54/

  28. Hi i brought a property in 2012 with 5lakh and selling in 2017 with 12lakh.
    what will the total tax?

  29. Here is the calculation. Hope this is useful

    Purchase Amount 5,00,000 (FY 12-13)
    Indexed Cost 6,80,000
    Sale Amount 12,00,000 (FY 17-18)
    Long term Capital Gain 5,20,000
    20% Tax 1,04,000

  30. RK NAGESWARARAO says:

    I purchased a independent house for 2208554.00 in 2012-13, spent house modification & minor works costing Rs.2,49,980.00 (No Bils) and sold for Rs. 32,00,000.00 in 2017-18, could be please inform me the capital gains and tax liability if any.

  31. Here is the calculation without including the cost of repair as bills for the same are not available.
    Purchase Amount 22,08,554
    Indexed Cost 30,03,633
    Sale Amount 32,00,000
    Long term Capital Gain 1,96,367
    20% Tax 39,273

  32. V Krishnan says:

    Dear sir, I’m a salary person, earnings 2.85 lakhs year, and I’m trading in equity and earnings around 25000 to 40000 (selling will be done more than year holding) yearly. So total income around 3.5 lakhs, so am I eligible to pay tax/ or returns file?? Pls clarify…..

  33. DearV Krishnan,

    Since gain from your equity investment is all long term (more than 1 year), it is exempt, hence you are not required to pay any taxes on that. In case of salary income, you may have to file the income tax return. Click here for information about filing income tax return

  34. Deivarayan says:

    In the year 2005 I have purchased a plot for 2,50,000/- and constructed ground floor in the same year at the cost of Rs.70,000/- and constructed 1st floor in the year 2010 at the cost of Rs.75,000/- and constructed 2nd floor in the year 2013 at the cost of 2,25,000/- and sold the property in the year 2017 at Rs.16,70,000/-.I do not have ANY BILLS for the entire 3 floor constructed, only having registration document for land purchased.What is the capital gain?

  35. The calculation is based only on the cost of plot. Since there are no bills for construction, you will need to check with your CA.
    Purchase Amount 2,50,000 (FY 04-05)
    Indexed Cost 6,01,770
    Sale Amount 16,70,000 (FY 17-18)
    Long term Capital Gain 10,68,230
    20% Tax 2,13,646

  36. rakesh kapoor says:

    i am retired and hod 500 stocks which i sell on ongoing basis and in a year i get 1.5 lac as long term and 3 lac as dividend income i do not have any other income what will be my tax in this case

  37. Your income is well below taxable income and dividend income is not taxed in the hands of the recipient, hence you will not need to pay any taxes.

  38. Padmanabhan s says:

    Good and useful information to investors

  39. Padmanabhan s says:

    Thanks for all capital gain related information

  40. Thank you for sharing

  41. sangeeta says:

    I have purchase a House on 11th August 2011 for Rs 37,50,000.Now Planning to sell the same for Rs 64,00,000 by paying brokerage of Rs 64,000/-.We are planning to buy new house ,pls advice capital gain part

  42. This calculation is based on Cost Inflation Index (CII) of FY 17-18
    The tax liability will decrease further based on CII of FY 18-19, which will be updated in one or two months

    Purchase Amount 3,750,000
    Indexed Cost 5,543,478
    Sale Amount 6,336,000 (net of brokerage)
    Long term Capital Gain 792,522
    20% Tax 158,504

    Here are some of the links for information on saving capital gains on selling residential property
    https://goo.gl/vfFiJA
    https://goo.gl/79Q3Uh

  43. NARENDRA says:

    please let me know capital gain tax implications for proposed sale of flat on july 2018 at NOIDA, with caculations —
    1 cost of purchase and possession october 1993 = 5,35,000
    cost of registration of flat october 1995 . = 53,000
    2 proposed sale price of flat on july 2018 . = 60,00 000
    3 capital gain accrued and tax on it to be paid in jult 2018 = ?
    I shall be thankful
    regards
    Narendra

  44. This is based on CII of FY17-18 (Actual Tax will be lower once new CII for FY 18-19 is announced)
    Purchase Amount 588,000 (including regristation cost)
    Indexed Cost 1,599,360
    Sale Amount 6,000,000
    Long term Capital Gain 4,400,640
    20% Tax 880,128

  45. B S R MURTY says:

    I bought a property for Rs.4,70,000 on 15th oct 1996 and sold it on 8th March 2018 for Rs,1,10,00,000/-
    I spent around 5 lakhs for development compounds wall bore and small 20×16 shed.
    I thought of buying house in couple of months.
    As the sale happened during the fFY 2017-18 am I to pay capital gains or can show it in next fy 2018-19
    if I do not purchase a property.
    can you please let me know how to much i have to pay as Capital gain if I do not buy?
    If I buy how much to pay.
    please advise whether to go for buying property to save capital gain or pay capital gains.

  46. Here is the calculation for your long term capital gains
    Purchase Amount 470,000 (1996)
    Indexed Cost 12,78,400
    Sale Amount 1,10,00,000 (FY 17-18)
    Long term Capital Gain 97,21600
    20% Tax 19,44,320

    This calculation is without considering your developement cost. You can reinvest in our property and save capital gains. Please consult your Chartered accountant and he should be able to guide you properly in this matter

  47. Srinivasan R says:

    A residential house bought in August 1980 for 55000 is planned to be sold at 55,00,000 in 2018-19. How would indexation help in reduction of capital gains tax or should a new apartment(joint holding) can be used to offset the entire tax?

  48. Since the purchase value is so low, indexation may not help much.
    Here is the calculations:
    Purchase Amount 55,000 (1980)
    Indexed Cost 154,000
    Sale Amount 5,500,000 (FY 18-19)
    Long term Capital Gain 5,346,000
    20% Tax 1,069,200

    You may be able to offset the tax by investing in new apartment. You need professional advise from CA in this matter

  49. please let me know capital gain tax implications for proposed sale of commercial property:
    1. Cost of purchase is NIL { Received by WILL } in 1985
    2
    . proposed sale price 1,50,00,000
    Thanks

  50. The cost of acquisition of the inherited property will be the amount paid by the previous owner towards the purchase of this property and the indexation will be allowed based on such amount. If cost is not known, there is an option to use fair market value. You need to consult a CA or qualified property valuation service provide in this matter.

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