Software for computing Income tax on stock market trades


I am ready to give my help in the taxation aspect and initial layout of the reports if somebody is ready to put the same into software language so that the users can get all the reports required by income tax under various sections and heads.

Such a software would be immensely helpful for all the members.



I can help you in developing the software. I would need your clarification on this part. And the software would be free.

As per my understanding..we only need to take care of the Short Term Capital Gains which is 10% if we sell a scrip in less than 1 year time. Now here is my doubt, if you have knowledge on this, please clarify:

Date of buy 01/04/2007
Share Name A
No of shares 10
Price 15

Date of buy 02/09/2007
Share Name A
No of shares 15
Price 20

Date of Buy 05/10/2007
Share Name B
No of shares 40
Price 50

Date of Sell 10/10/2007
Share name B
No of shares 20
Price 10

Date of sell 01/12/2007
Share name A
No of shares 20
Price 14

Please tell me how will you calculate short term capital gains tax on this?
STCG for

Share A:
Lot 1: 10 shares all sold
Bought: 1/2/07 at Rs. 15
Sold: 1/12/07 at Rs. 14
ST Loss: Rs. 1 per share x 10 shares = Rs. 10.

Lot 2: 15 shares, of which 10 sold, 5 left
Bought: 2/9/07 at Rs. 20
Sold: 1/12/07 at Rs. 14
ST Loss: Rs. 6 per share x 10 shares = Rs. 60.

Share B
Lot 1: 40 shares of which 20 sold, 20 left
Bought: 5/10/07 at Rs. 50
Sold: 10/10/07 at Rs. 10
ST Loss: rs. 40 per share x 20 = Rs. 800.

Total loss is Rs. 870. There is no ST Capital Gains tax on this. So you can actually book ST profits upto Rs. 870 and not pay any tax. Any profits above Rs. 870 will incur Rs. 10% ST tax, plus surcharge if applicable (surcharge is 10% of tax payable if income is above 10 lakhs) plus 3% cess.

Similar threads