section 14 A
This query is : Resolved
05 November 2009
A co. trade in shares & securities . Co.has some investment also.It earn dividend income on shares treated as inventory.
My Question is -
1. whether sec 14 A is applicable in the case of trader of shares & securities
2. If yes what will be the average value of investment. whether value of inventory also included in investment.
My Question is -
1. whether sec 14 A is applicable in the case of trader of shares & securities
2. If yes what will be the average value of investment. whether value of inventory also included in investment.
CA.Ramkrishna
(Expert)
07 November 2009
Hi Tara,
The Wordings of Sec 14A of the Income Tax is reproduced below for your reference
For the purpose of computing the total Income under this chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act.
From the above it is quite evident that it is applicable to trader of share & securities also as the section says" expenditure incurred by the assessee"
Investment will not include the value of inventory.only investment value has to be taken
The Wordings of Sec 14A of the Income Tax is reproduced below for your reference
For the purpose of computing the total Income under this chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act.
From the above it is quite evident that it is applicable to trader of share & securities also as the section says" expenditure incurred by the assessee"
Investment will not include the value of inventory.only investment value has to be taken
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Visiting card purchase
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
