Valuation of Shares
This query is : Resolved
04 July 2009
'A' has taken shares as loan from relative through demate account to settle the account with broker and subsequently shares has been return through demate account, as per CBDT circular it is not a transfer u/s 2(47) so nil taxation liability on transfer.But how and at what value entry will be passed in accounts.As the loan remains outstanding at end of the year?regarding sec 2 (47 ) as per circular no 751 of 1997 loan of shares is not transfer so capital gain tax does not arise .i wants clarification for book entry as this is friendly loan how the necessary entry @face value or @ prevailing market rate or @ cost of lender.
05 July 2009
Dear Sagar,
On the basis of info given and understand by me following entries needed to be passed in books:
When A has taken shares as loan from relative
Respective Share A/c Dr.
To XYZ A/c (from whom share has taken)
XYZ A/c Dr.
To Profit on transfer of shares A/c
To Respective Shares A/c
On the basis of info given and understand by me following entries needed to be passed in books:
When A has taken shares as loan from relative
Respective Share A/c Dr.
To XYZ A/c (from whom share has taken)
XYZ A/c Dr.
To Profit on transfer of shares A/c
To Respective Shares A/c
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- SFT Cash Deposit in Current Account
- Annual return in Gst
- TDS APPLICABILITY......
- Copyright software
- 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
