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How to enter Bonus, Split, Merger & Demerger in MProfit

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  • How to enter Bonus, Split, Merger & Demerger in MProfit

    Steps to add the Bonus Shares in MProfit -

    1. From the summary screen - right click on the name of the stock. Go to Other Transactions > Add Bonus Received.

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    2. Enter the number of shares you received as a bonus and click on Save.

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    Steps to add the Stock Split in MProfit -

    1. From the summary screen - right click on the name of the stock. Go to Other Transactions > Add Stock Split Details.
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    2. Enter the record date, quantity after split and click on Save.
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    Steps to add the Merger in MProfit -

    1. From the summary screen - right click on the name of the stock. Go to Other Transactions > Add Merger Details.
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    2. Check the company name in the dropdown list. If its new company you need to add it by clicking on New.
    Enter the balance shares and click on Save.
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    Steps to add the D'Merger in MProfit -

    1. From the summary screen - right click on the name of the stock. Go to Other Transactions > Add Stock D'Merger Details.
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    2. Check the stock name in dropdown list. If its new company then press CTRL+N to add new name. Enter the record date, quantity and amount.
    You can add multiple records if demerger has happened with multiple stocks.


    Last edited by Tanmay Keni; 22-06-18, 02:33 PM.

  • #2
    How mprofit handles the LTCG tax on mergers. Some examples would help. For examples, how mprofit calculates LTCG or STCG in following situations.
    1. About recent merger of Capital first with IDFC bank. If I had both shares bought before 31Jan2018 and some capital first share after this date. How the tax is calculated here since 2 things are at play here grandfathering and holding period for LTCG or LTCL?
    2. If I receive IDFC bank shares for Capital first, what date should be entered, the effect date of merger or the date of actual credit of shares? Again date of credit is different depending on the source of information. RTA's email says shares were credited on 10Jan, demat account shows credit as 16Jan.

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    • #3
      Hello,

      Please find the answers for your queries:

      1. MProfit will compute LTCG of both the shares separately as per the respective date and as per grandfathering rule.

      2. Effective date of merger should be the date announced by the company as per the notice issued.
      MProfit Support

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      • #4
        For taxation purpose, corporate actions of bonus, dividend, mergers, demergers, spin-off etc , which date should be entered in mprofit
        1. The record date OR
        2. Date of actual credit of shares/dividend in demat/bank account.

        A feature suggestion for the program is that these actions should be automatically suggested by mprofit and user should be just able to accept or reject the actions. Since all the information is already there such as stock holdings, no of shares, date of purchases etc which are enough for program to decide these corporate actions.

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        • #5
          Dear Zomby,

          MPROFIT automatically computes the capital gains as per income tax rule maintaining the original purchase dates and values from the original purchases post corporate action.

          Please refer the forum post:
          https://forum.mprofit.in/forum/gener...led-in-mprofit

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          • #6
            Mprofit does not automatically suggest the corporate actions. It calculates values after the user manually enters it. That not what I had suggested.

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            • #7
              For taxation purpose, corporate actions of bonus, dividend, mergers, demergers, spin-off etc , which date should be entered in mprofit
              1. The record date OR
              2. Date of actual credit of shares/dividend in demat/bank account.

              Comment


              • #8
                Dear Zomby,

                For corporate actions you need to enter Record Date.
                MProfit Support

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                • #9
                  I am getting incorrect stock closing balance after posting merger entry of Capital First and IDFC Bank. The screenshot below shows the incorrect amount of stock balance appearing in the report:


                  The entry made in the merger of Capital First is shared below:


                  The sale transaction of IDFC First is also shown below:




                  Why is there a balance of 0.0001 share appearing? How can this be resolved? Please help.

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