How does MProfit accurately compute capital gains considering corporate actions?

Modified on Fri, 26 Apr 2024 at 12:55 PM

In this tutorial, we will explain how you can compute capital gains accurately considering corporate actions in MProfit.

Follow the steps below:

Step 1: Login to your MProfit account and select the asset.

Here, we have taken Reliance Industries as an example. 

Step 2: In the next window, keep the Period as All To Date from the drop-down list.

Step 3: 

Purchase of Shares

  • Bought a hundred shares at a price of 100 rupees per share.

  • Total purchase amount: 10,000 rupees.


  • On July 20, 2023, Reliance Industries was demerged into Jio Financial Services.

  • Ratio: One share of Reliance Industries to one share of Jio Financial Services.

  • Cost allocation ratio: 95.32% for Reliance Industries and 4.68% for Jio Financial Services.

Selling Shares

  • On March 14, 2024, sold all hundred shares at the price of two hundred rupees per share.

  • Adjusted purchase price per share: 95.32 rupees (due to the demerger).


  • Verify the selling price (200 rupees) and the adjusted purchase price (95.32 rupees) for accuracy.

  • Access the Reports section located at the top right side for verification.


Step 4: Select Capital Gains.

Step 5: Next, select Capital Gains-ITR Format.

Step 6: Click Stocks.

Step 7: Click Generate Report.

Step 8: Here, we observe that the buying price stands at ninety-five point three two. 

This illustrates how demergers are handled within MProfit for Reliance NGO. 

Likewise, let's consider another instance involving HDFC Bank and HDFC Limited.

Step 9:  Here, we have taken HDFC Bank as an example. 

Step 10: 

Initial Purchase (January 5, 2022)

  • Purchased 100 shares at ₹50 per share.

  • Total amount: ₹5000.

Merger (July 13, 2023)

  • HDFC Limited merged into HDFC Bank at a ratio of 25:42.

  • After the merger, left with 84 shares of HDFC Bank.

  • Average purchase price after merger: ₹71.43.

Sale (March 16, 2024)

  • Sold 150 shares at ₹500 per share.

  • Applying FIFO method:

    • First, sold the initial 100 shares purchased at ₹50 per share.

    • Then, sold 50 shares from the remaining 84 shares purchased at ₹71.43 per share.

Verification in Reports

  • Access the Reports to verify the transactions and calculations.


Step 11: Select Capital Gains and then Capital Gains- ITR Format

Next, select Stocks

Step 12: Click Generate Report


Now, as you can observe, the first hundred shares were bought at fifty rupees each. As for the remaining fifty shares, they were acquired at an average price of seventy-one point forty-three. Using this information, we've calculated the capital gains.

This is how you can seamlessly compute capital Gains accurately considering corporate actions in MProfit!

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