Capital Gain LTCG or STCG on non delivery base transation

[Bhavesh Patel]

One of our clients has bought RIL Shares 500 @ 1205 on 26/07/2019. Then he has bought new RIL share 100 @ 2120 on 08/09/2020 and sell it 100 @ 2100 on 09/09/2020(it is non-delivery based BTST transaction). Then which of the following method true, Method -1 or Method-2.

Method-1

Qty	Rate	Amount
100	1205	1,20,500.00
100	2100	2,10,000.00
Profit		89,500.00

Method-2

Qty	Rate	Amount
100	2120	2,12,000.00
100	2100	2,10,000.00
Loss		2,000.00

[DR.MARIAPPAN GOVINDARAJAN]

Method II is correct.

AI Summary

Capital gain classification on non-delivery BTST transactions: sale matched to recent purchase price, treated as short-term loss. Adviser concluded that for the non-delivery BTST sale the correct approach is to match the sale with the immediately preceding purchase price, so the transaction produces a short-term capital loss rather than being matched to an earlier lower-cost lot.