New Delhi, Aug. 19 -- It is common for investors to dabble in some short-term trades and for traders to keep a stock portfolio with a long-term view. When shares bought for the short term are sold, tax treatment may not necessarily be on the short-term profits, but long-term profits may get taxed due to what is known as the FIFO methodology. However, there is a hack around this. 
But first, what's FIFO

FIFO, or first-in, first-out, methodology is used to calculate your stock transactions for tax purposes. Let's assume you bought 2,500 shares of a company for Rs.100 each on 18 August 2024 for long-term holdings and bought another 2,500 shares of the same company for Rs.180 each on 18 August 2025 for a short-term trade.

You sell 2,5...