Hi, I had some Reliance stocks pledged with Zerodha from a long time - more than a year.
Yesterday, I bought some more Reliance stock under CNC intending to take delivery, but today I actually sold all those stocks that I bought yesterday. Thus, a BTST trade.
Note that I didn’t unpledge my previously pledged Reliance stocks. They are still pledged.
Now my question is regarding Capital Gain. I want to know do I have to pay LTCG or STCG on this trade?
I didn’t unpledge my old shares, so the shares that got debited from my demat are the recently bought ones so I guess it should be STCG. right?
Our Tax P&L report will show it as LTCG, as the calculation of average price is done on FIFO (First In First Out) basis. However, if you wish to show it as STCG, you can edit the report and do it, but if there’s any flag from the IT department, you should be able to provide an explanation on the calculation.