Shares kept as stock in trade sold
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 September 2013
Dear Experts,
My company bought some shares for trading and treated it as stock in trade. Same shares were pledged to lenders against borrowing. Subsequently, lenders sold the shares on non payment of loan.
Now, how to treat this transaction for tax purpose? Whether I have to first convert these stock into capital asset and then show it as repayment of loan or I can directly show it as sale of stock to lender.
Thanks,
My company bought some shares for trading and treated it as stock in trade. Same shares were pledged to lenders against borrowing. Subsequently, lenders sold the shares on non payment of loan.
Now, how to treat this transaction for tax purpose? Whether I have to first convert these stock into capital asset and then show it as repayment of loan or I can directly show it as sale of stock to lender.
Thanks,
30 September 2013
Kindly don't link the repayment of loan and sale of shares.
There is no need to convert stock in trade into capital asset.
On sale of shares, business loss or income shall arise. The same needs to be included in total business income/loss of the assessee during the year.
Repayment of loan shall have no tax implication.
There is no need to convert stock in trade into capital asset.
On sale of shares, business loss or income shall arise. The same needs to be included in total business income/loss of the assessee during the year.
Repayment of loan shall have no tax implication.
Message likes :
1 times
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
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- Value of property in capital gain
- FORM 26A APPLICABILITY
- Copyright software
- Multiple trade mark
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
