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Status of shares - while filing itr 4

K Suresh (Investment advicer) (51 Points)

26 September 2015

Sirs,

I am an LIC Agent and have been doing the e filing on my own through ITR 4 for the last few years.

I would be grateful to anyone who may clarify my three queries given below;-

Would like to know where to show the value of shares that I am holding, in the last FY and to do so which date's value to be taken in to the consideration?

Which vale of the holding shares to be shown? The actual face value or the market value on any given trading day?

Similarly where to show the profit and loss that I might have had because of the selling of my shares during the last FY?

Thanks

Yours

K. Suresh.

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5 Replies

Bhanu Prakash Rao (Think Beyond Stay Ahead...!) (1064 Points)
Replied 26 September 2015

Dear Mr. Suresh,

As per Sec.44AA(2) of Income Tax Act if you fall into the category of persons mentioned, then you need to maintain your books of accounts. In that case you can show those shares in ITR 4 - Part A BS under Investments.

Since capital gains will be taxed on only on transfer of shares, there is no need to show the gain as per market rate. Therefore its suggested to show only cost of acquistion.

1 Like

K Suresh (Investment advicer) (51 Points)
Replied 26 September 2015

Thanks for that valueable clarification.

However I am still cofused on two points;

First of all whether to enter the total value of my entire shares that I have been holding for the concerned FY.

Secondly can I show whatever the dividends that I might have received for concerned FY, as exempt income?

Thanks

Yours

K. Suresh.

Miss Rinkal (Student) (1304 Points)
Replied 26 September 2015

It seems that you have held the shares as investments and not a trader in shares.

If shares are held as investment. If the shares are held for more than 1 year then it long term capital gain which is exempt and has to be shown under Exempt income schedule. And if held for less than 1 year, then they are short term capital gains and have to be shown in capital gains schedule in A - STCG (3) From sale of equity share or unit of equity oriented Mutual Fund (MF) or unit of a business trust on which STT is paid under section 111A or 115AD(1)(ii) proviso (for FII)

If shares are held as stock: The shares will form part of stock in trade and profit on it will be the net profit