How MProfit handles the merger of HDFC Bank and HDFC Limited during capital gain computation.

In this tutorial, we will explain how you can calculate HDFC Ltd and HDFC Bank Merger - Capital gains for HDFC Bank in MProfit.

Follow the steps below:

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

Here, we have taken HDFC Bank as an example. 

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

January 5, 2022:

• Transaction: Purchase

• Shares: 100

• Price per share: 50 rupees

July 13, 2023:

• Transaction: Merger with HDFC Limited

• Shares remaining: 84

• Purchase price per share for remaining shares: 71.43 rupees (calculated based on the merger)

March 16, 2024:

• Transaction: Sell

• Shares sold: 150

• Price per share: 500 rupees

Calculation of purchase prices for remaining shares:

• Initial purchase: 100 shares at 50 rupees each

• Remaining shares after merger: 84

• Purchase price per share for remaining shares: 71.43 rupees

Let's verify this now.

Step 3: Navigate to Reports on the top right.

Step 4: Select Capital Gains.

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

Step 6: Click Stocks. 

Step 7: Customize the Period by selecting Current Financial Year if the shares were sold in the current financial year.

Step 8: Now, click Generate Report.

As shown, The initial purchase price of 100 shares was 50 rupees, while the purchase price of the remaining 50 shares post-merger was 71.43 rupees.

This is how MProfit handles the HDFC Bank and HDFC Limited merger for capital gains computation!