Mutual Fund - Capital Gains calculator : An illustration

Index

Units (Original) Original Buy / Sell transaction units

Matched Quantity Sell transaction units matched with respective Purchase units, in accordance with the FIFO logic
Purchase = Buy Includes the following transaction types : (P) Purchase, (DR) Dividend Reinvestment, (TI) Transfer In, (SI) Switch In
Redeemed = Sell Includes the following transaction types : (R) Redemption, (TO) Transfer Out, (SO) Switch Out

Case 1: Single Transaction of Buy and Sell

Purchase Redemption Short Long

Sub- Scheme
Sr. No. Category AMC Matched Tx Tx term term
category Name NAV Date NAV Value NAV Date NAV Value
Quantity Type Type Gain Gain
Gain
ICICI
according ICICI
PRUDENTIAL
to FIFO Medium PRUDENTIAL
1 DEBT INCOME 100 P 8/25/2006 35 3500 R 10/30/2006 45 4500 1000 0
Term MUTUAL
PLAN-
FUND
GROWTH

Units Tx
NAV Date NAV Value
(Original) Type
Original Sell transaction 100 R 10/30/2006 45 4500
Original Buy transaction 250 P 8/25/2006 35 8750

o 100 units were sold on Oct 30, 2006 @ 45/unit (NAV)

o Original Buy transaction for the corresponding Sell transaction :

250 units were bought on Aug 25, 2006 @ 35/unit (NAV)

Out of 250, only 100 units were used for calculating gain according to FIFO logic
Gain = 100 * (45 - 35) = 1000
Difference between Oct 30, 2006 and Aug 25, 2006 is <= 365 days, hence Short term Gain

o Total Gain = 1000 (Short Term)

Case 2: Single Sell transaction using multiple Buy transactions

Purchase Redemption
Short Long
Sr. No. Sub- Scheme Matched Tx Tx term term
Category category AMC Name Quantity Type NAV Date NAV Value Type NAV Date NAV Value Gain Gain

ICICI
ICICI
PRUDENTIAL
Medium PRUDENTIAL
Gain 2 DEBT INCOME 150 P 8/25/2006 35 5250 R 9/22/2009 55 8250 0 3000
Term MUTUAL
according PLAN-
FUND
to FIFO GROWTH

ICICI
ICICI
PRUDENTIAL
Medium PRUDENTIAL
3 DEBT INCOME 50 DR 9/22/2007 0 0 R 9/22/2009 55 2750 0 2750
Term MUTUAL
PLAN-
FUND
GROWTH

Units Tx
NAV Date NAV Value
(Original) Type
Original Sell transaction 200 R 9/22/2009 55 11000
Original Buy transaction 1 250 P 8/25/2006 35 8750
Original Buy transaction 2 150 DR 9/22/2007 0 0

o 200 units were sold on Sep 22, 2009 @ 55/unit (NAV)

o Original Buy transaction for the corresponding sell transaction :

a) 250 units were bought on August 25,2006 @ 35/unit (NAV)

Out of 250, only 150 (250 - 100) units were used from this, since 100 units have already been used in the first Sell transaction
Gain = 150 * (55-35) = 3000
Difference between Sep 22, 2009 and Aug 25, 2006 is > 365 days, hence Long term Gain

b) 150 units were bought (DR) on Sep 22, 2007 @ 0/unit (NAV)

Out of 150, only 50 (200 - 150) units were used from this purchase transaction
Gain = 50 * (55 - 0) = 2750
Difference between Sep 22, 2009 and Sep 22, 2007 is > 365 days, hence Long term Gain

o Total Gain = 3000 + 2750 = 5750 (Long Term)

Case 3: Single Sell transaction using multiple Buy transactions, resulting in Short term as well as Long term Gains

Purchase Redemption Short Long

Sr. No. Category Sub- Scheme Matched Tx Tx term term
NAV Date NAV Value NAV Date NAV Value
category AMC Name Quantity Type Type Gain Gain

ICICI
ICICI
PRUDENTIAL
Medium PRUDENTIAL
4 DEBT INCOME 100 DR 9/22/2007 0 0 R 9/30/2009 31 3100 0 3100
Gain Term MUTUAL
PLAN-
according FUND
GROWTH
to FIFO

ICICI
ICICI
PRUDENTIAL
Medium PRUDENTIAL
5 DEBT INCOME 200 TI 10/30/2008 33 6600 R 9/30/2009 31 6200 -400 0
Term MUTUAL
PLAN-
FUND
GROWTH

Units Tx
NAV Date NAV Value
(Original) Type
Original Sell transaction 300 R 9/30/2009 31 9300
Original Buy transaction 1 150 DR 9/22/2007 0 0
Original Buy transaction 2 350 TI 10/30/2008 33 11550

o 300 units were sold on Sep 30, 2009 @ 31/unit (NAV)

o Original Buy transaction for the corresponding sell transaction :

a) 150 units were bought (DR) on Sep 22, 2007 @ 0/unit (NAV)

Out of 150, only 100 (150 - 50) units were used from this purchase transaction
Gain = 100 * (31 - 0) = 3100
Difference between Sep 30, 2009 and Sep 22, 2007 is > 365 days, hence Long term Gain

b) 350 units were bought on Oct 30, 2008 @ 33/unit (NAV)

Out of 350, only 200 (300 - 100) units were used from this purchase transaction
Gain = 200 * (31 - 33) = - 400
Difference between Sept 30, 2009 and Oct 30, 2008 is <= 365 days, hence Short term Gain

o Total Gain = 3100 (Long Term) and - 400 (Short Term)

* Special Case where the resulting Gain is split into Short term and Long term Gain

-end