Fifo

Part of the Sanchayam series. Why FIFO FIFO (first in, first out) is the standard cost basis method for Indian equities and mutual funds for tax purposes. When you sell shares, the oldest lots you bought are assumed to be the ones sold first. The cost basis of those oldest lots determines your taxable gain. Sanchayam implements FIFO at sell time: when a sell lot is recorded, the backend walks the buy lots in chronological order, consuming them until the sell quantity is satisfied, and computes the aggregate cost. ...