The closest in concept is inventory where this type of logic ie. FIFO is common in consumption (issue) valuation. In inventory method, they are more interested in posting the purchase rate against the issue, but we are interested in posting the purchase date also against the issue (sale).
If you have even a simple inventory package that permits FIFO rate posting AND posts purchase date also against the issue (stock sale in our case), then it should work if you treat each scrip as a part number. This is not uncommon since inventory packages use this for calculating days turnover. Also, they should be having menu to know stocks lying for more than one year (same as LTCG).
Best solution. Be an investor and hold the stock for more than a year. No problem.
OK
That is a decision that is left up to each individual fund manager to make at the time shares in a specific company are sold. He presumably makes that decision based on what is best for the shareholders.
I understand the FIFO method well but what actual method is adopted while entering these transactions in the account book so that calculation of the capital gains is easy and comprehend-able/easily reprodusable