??Shares as Stock-in-Trade---VALUATION??

Ankit (C.A.-Student) (680 Points)

12 May 2010  

Hello to all

An individual (proprietor) deals in stock market almost daily and do intraday & also some delivery based trading of shares.

For income tax purpose, gains from these transaction are computed under the head business/profession (Is this approach is correct? Bcoz last year return have filed under P/G/B/P & till now no scrutiny notice have been recieved despite fact that n majority cases tax audit done) &

that why proper book of a/c are also required to be maintained & audit to be done (in some cases) & also stock (Quantitative detail)to be maintained.

Now from accounting point of view how to calculate the value of shares as stock because AS-2 is not applicable in these cases. Please provide the method of valuation in case of shares.

Is AS-30,31,32 related with these issue?

Please Help In this regard