can any one please tell me for the following.
A ---- company is having around Rs.1.00 lakh in mutual fund... as on 31st March mut.fund value Rs.1.10 Lakh and on 1st April mut.fund value Rs.98,000/- i want to know, what entry to be made for these entries? pls. advice me.
sudarsan. s. mail : sudharshan10 @ rediffmail.com
NO ENTRY NEED TO BE DONE .
ENTRY TO BE DONE AT FACE VALUE WHEN PURCHASED .
MARKET VALUE WILL BE SEEN AT THE TIME OF SALE / MATURITY
As per AS-13, provision is to be made if the value of investments declines below than its purchase value, if it increases no entry is required. In this case as the value of investments as on Mar 31 is more than the purchase value no entry is required to be passed.
| Originally posted by :Murali | ||
| " | As per AS-13, provision is to be made if the value of investments declines below than its purchase value, if it increases no entry is required. In this case as the value of investments as on Mar 31 is more than the purchase value no entry is required to be passed. | " |
Dear Murli,
You are right ........... above that can you please guide us on the tax effect on sale of mutual fund ?
Amit
no entry should be done
Sale of mutual fund will attract capital gains. If STT is paid on sale, then LTCG is exempt but STCG is taxable at 10%. If no STT is paid, then it will be treated as anyother capital gain.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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