How are Capital Gains on Listed Bonds and Sovereign Gold Bonds computed in MProfit?

In this tutorial, we will explain how Capital Gains on Listed Bonds and Sovereign Gold Bonds are computed in MProfit.

Follow the steps below:

Step 1: Login to your MProfit account and click the Actions tab.

Step 2: Choose View all transactions from the drop-down list.

Step 3: Now click Asset Type and select Traded Bonds from the drop-down menu.

Here is an example of some transactions:

• A sovereign gold bond was purchased on March 1, 2021, with 200 quantities at a rate of 150 rupees. It was sold on January 16, 2024, with 100 quantities at a rate of 120 rupees. 

  
  

• Another sovereign gold bond was bought on March 1, 2021, with 100 quantities at a rate of 50 rupees. It was sold on March 18, 2024, with 75 quantities at a rate of 30 rupees. 

  
  

• UP Power Corporation was purchased on March 1, 2023, with 500 quantities at a rate of 10 rupees. It was sold on March 22, 2024, with 250 quantities at a rate of 100 rupees. 

  
  

• Marwati shares in finance bond were bought on March 3, 2023, with 300 quantities at a rate of 40 rupees. It was sold on January 11, 2024, with 200 quantities at a rate of 20 rupees. 

  
  

Now, to understand the capital gains follow the steps below:

Step 1: Click on Reports.

Step 2: Select Capital Gains.

Step 3: Choose Capital Gains - ITR Format.

Step 4: Click on Traded Bonds.

Step 5: Select the Period and then click Generate Report.

For listed and traded bonds or sovereign gold bonds, the rules are as follows:

1. If sold within one year of purchase, they fall under short-term capital gains. 

   
   

2. If sold after one year, they fall under long-term capital gains with 10% without indexation. 

   
   

3. If sovereign gold bonds are sold within three years, they fall under short-term capital gains

   
   

4. If sold after three years, they fall under long-term capital gains with 20% with indexation. 

Check the purchase and sale dates and the category to confirm these rules. 

This is how Capital Gains on Listed Bonds and Sovereign Gold Bonds are computed in MProfit!