How does the demerger of Reliance Industries into Jio Financial impact the calculation of capital gains?

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.

Demerger

• 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).

Cross-Checking

• 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.

This is how the demerger of Reliance Industries into Jio Financial impact the calculation of capital gains in MProfit!