The Holdings carry forwarding to the next financial Year

General
1

Dear PEERS,
Pranam!
Now the new Fy 2020-21 started.
My query is: The holdings of the last year 2019-20 will be carry forwarded to the 2020-21 year.
So how the price of the Carry-forwarded scrips will be calculated/accounted?
I mean: Whether the average Buy price of the total shares I have been traded in the 2018-19 will be considered OR exactly the qty I have bought in the last trades of the scrip in 2018-19 will be considered?

Example:
I have been bought 10500 shares of Yesbank in 2017-18 at an average price of 150/- and sold 10000 shares at an average price of 70/- in many number of trades during the 12 months. the last 500 shares bought at a price of Rs.40/. I incurred a loss of 8 lacs here.
Now the 500 Yesbank shares will be carry forwarded to 2020-21 year - whether at the price of Rs.150/- Or Rs.40/- ?

Please respond.
Thanks
Kris

2

@Nakul Can you.

3

@kvgon Is your query regarding Income tax? For IT, I believe FIFO method would be followed to calculate your cost of purchase.

4

Sir it is simple. U buy 500 shares on dec 2017 at 160 price per share. Next 250 shares in dec 2019 at 120 price per share. So total u have 750 shares.

Now if u sell say 100 shares in jan 2020 for 130 per share. They will first calculate ur profit or loss based on dec 2017 shares only. ie a loss of 30 rupees per share.

Only after u sell all dec 2017 shares they will consider dec 2019 shares for calculation.

So the last 500 shares bought at 40 will be the last to go whenever u sell. In this case these last 500 will be carry forwarded at ur last paid price of 40 only

@siva pls validate.

6

@kvgon @ksksat Holding buy price is updated as per the FIFO method. Here, last 500 shares were bought at Rs 40, it will be carry forwarded at the same price. Check this.

7

Thanks sir. Thats what I had explained above.

8

Thank you very much for this info. I did taken/generated the P&L report from the zerodha and found most of the scrips are considered as you have mentioned BUT surely there are exceptional cases I did notice that the profit/loos on the same is not matching with … anyway I wish to note those specific case to zerodha for further clarification BCOS I couldnt get that amount in anyway … I mean it is not matching with the cost price either taking average or taking the first puchased lot or the last purchased lot …?
it surprised me!
thank u sir, thanks a lot for your prompt response including all other peers who did comment in connection with this query