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

Modified on Mon, 29 Apr 2024 at 03:45 PM


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. 


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


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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.


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Step 4: Select Capital Gains.


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Step 5: Now, select Capital Gains - ITR Format


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Step 6: Click Stocks


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


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Step 8: Now, click Generate Report.


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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!


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