Q: For the purpose of LTCG and STCG calculation, How is the buy date and Sell date of shares determined if Buying and Selling is done in a staggered manner,ie, multiple buying and multiple selling trades.
eg:
If I buy shares on 3-Mar,2020 ,
Buy more shares on 3-Oct-2020 and
sell all of it on 15-Mar-2021…
and I have Gains
Would it be taxed as LTCG or STCG?
Hi @Aby_Math
If the shares are held for more than 12 months, they will be considered as Long Term Capital Assets otherwise Short Term Capital Assets.
Also, FIFO method is used while computing the capital gains on the sale of stocks.
In your example, If you sold shares on 15/3/21 it will be considered that first you sold the shares bought on 03/3/20 and had LTCG on that shares and the remaining shares sold (if any) were bought on 03/10/20 and had STCG on them.
Hope this helps!