Short Term capital gain in INDIA?

Question鈥?br>
1-Say, I have purchased 20 scripts in 2007 financial year. Out of 20 scripts/equities, I sold out 9 scripts and earned 5 lakh on that. In the same financial year, if I sell another 5 scripts and book the loss of 1.5 lacs, how the tax work on short term gain. Can we combine our profit and loss and show just the profit of 5 鈥?1.5 i.e. 3.5 lakh in the tax return? I mean do we need to pay tax on 5 lakh or on 3.5 lakh.

2-Say, I have purchased 100 share of reliance at the rate of 200/share i.e. invested 20000 INR. Again, I bought the same 100 reliance shares after 2 months at the rate of 150/share i.e. invested 15000 INR. Now, if I sell 100 shares of reliance at 190/share in the same financial year, how the tax works? My total investment was 35000 INR and my average price per share for the same script is 175 for 200 shares. But I sold shares of 19000 INR, in this case, is there any appreciation? I think appreciation should be only 1500 INR. Is this correct?

Thanks

Just a not that I am a retail investor

1- On 3.5 lakhs only. (5-1.5 = 3.5)

2. First come first go. First you have purchased 100 shares @200 each=20,000.

First you have sold 100 shares @190/- and received Rs.19,000. So your loss is Rs.100*10=1,000.

You are having 2nd time purchased 100 shares of RIL (purchased @150/- per) share with you. This is the practice to be adopted in both the shares are deposited in the same Demat a/c.

In case if you are having two demat accounts A & B. and you have deposited the first 100 RIL in demat account A, the next 100 RIL has been deposited in demat A/c B.

In the above case, if you deliver the 100 shares from the A/c A, then loss Rs.1000. (200-190 x 10 =1,000)

In case if the 100 RIL are delivered from A/c B, then your gain is (190-150=40) Rs.4,000

Average price dose not arise in capital gains.