The treatment of transactions in the Equity Capital Gains Statement depends on the profile selected by the user – Investor and Trader.

You can view/change the investor type under the ‘General Profile’ page which is accessible on both ICICI Direct website and Mobile app.

A. If the Selected Profile is: Investor

Under investor type of client, classification of transactions for the purpose of calculation of ‘Capital Gains’ further depends on the segment in which the shares were purchased and the holding period of shares.

Case 1: Shares Purchased in the Rolling Segment

The Rolling segment is the regular trading segment where standard market transactions occur.

In this segment:

a. Intraday trading is permitted

b. Both delivery and non-delivery transactions are allowed

Treatment of Transactions:

a. If shares are bought and sold on the same day and same segment (rolling), the resulting gain or loss will be classified as Speculation Income.

b. If shares are bought and sold on different days, the gains or losses will be classified as:

i. Short-Term Capital Gain (STCG), or

ii. Long-Term Capital Gain (LTCG)

c. The FIFO (First In, First Out) method is applied for adjusting buy and sell transactions.

Case 2: Shares Purchased in T2T (Trade-to-Trade) Segment

The Trade-to-Trade (T2T) segment is a special settlement category introduced by stock exchanges to control excessive speculation and volatility.

In this segment:

a. Intraday transactions are not permitted.

Treatment of Transactions:

a. If shares held in the Demat account (in T2T segment) are sold and the same stock is repurchased on the same day, the FIFO (First In, First Out) method will be applied to adjust the sale.

b. Capital gain will be calculated as:

i. STCG or

ii. LTCG

c. This classification will be based on the original purchase date of the shares that are sold.

d. The shares repurchased on the same day will be treated as a fresh acquisition, and a new holding period will begin from the new purchase date.

B. If the Selected Profile is: Trader

a. If the user selects the Trader profile, all gains or losses will be treated as Business Income, regardless of whether the transactions are executed through:

i. Delivery

ii. MTF

iii. Intraday

b. The FIFO method will be applied for adjusting buy and sell transactions in all cases.