Stock lending & borrowing
This query is : Resolved
08 January 2012
Dear all,
What shall be the tax treatment in the hands of lender and borrower in case of transaction of Stock Lending & borrowing scheme ?
What shall be tax treatment when lender and borrower have followed accounting policy as to show transaction as investment and business ?
What shall be the tax treatment in the hands of lender and borrower in case of transaction of Stock Lending & borrowing scheme ?
What shall be tax treatment when lender and borrower have followed accounting policy as to show transaction as investment and business ?
CA PARAS BAFNA
(Expert)
08 January 2012
In case of stock borrowing, the benefits received in connection with it, will be treated as income by the Lender.
.
Borrower can claim the expenses in case he is a trader in such securities.
.
By the virtue of Section 47(xv) such transactions are not treated as transfer.
.
The borrower will recognise revenue at the time of purchase of such securites.
.
.
Borrower can claim the expenses in case he is a trader in such securities.
.
By the virtue of Section 47(xv) such transactions are not treated as transfer.
.
The borrower will recognise revenue at the time of purchase of such securites.
.
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