Stock vs investments
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 October 2012
Company dealing in shares treats the shares as stock.
Can the company treat one or two scripts as investments and transfer the stock to Invetsment? If yes. at what price?? Cost or market value??
After transferring the stock to investments, company will sell the invetsments afer 5 years
Will it be a long term capital gain or
Partly long term , partly business income
The act shows the transfer from invetsments to stock but what abt vice versa
Can the company treat one or two scripts as investments and transfer the stock to Invetsment? If yes. at what price?? Cost or market value??
After transferring the stock to investments, company will sell the invetsments afer 5 years
Will it be a long term capital gain or
Partly long term , partly business income
The act shows the transfer from invetsments to stock but what abt vice versa
CA Ayush Agarwal
(Expert)
10 October 2012
Read With AS 30. You Will Get Ful Detail.
Company Can Treat Investment or Stock, What The Management Decide.
Can Transfer Stock to Investment, Transfered to Invetment at market Value or Cost WhichEver is Lower, & Treat Balance as PGBP income & After That Whatever may be, LTCG or STCG or Loss, Will Chargeable Under Section 45 of Capital Gain Taxes.
Company Can Treat Investment or Stock, What The Management Decide.
Can Transfer Stock to Investment, Transfered to Invetment at market Value or Cost WhichEver is Lower, & Treat Balance as PGBP income & After That Whatever may be, LTCG or STCG or Loss, Will Chargeable Under Section 45 of Capital Gain Taxes.
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