accounting entry for share trading

Originally posted by : Niladri Ghosh
	Can anyone help me regarding computation and accounting entry for capital gain/loss from sale of securities (held as investment) through Demat accout?  Whether Brokerage, service tax, turnover tax etc. paid need to be account for or only net amount received will considered for calculate capital gain/loss. Please suggest with an example

cost of acquisition = cost of shares +brokerage+STT+Turnover tax+stamp duty+transaction charges + other charges if any but excluding "securities transaction tax"

sale proceeds = share price -( brokerage+ Service tax+ TOT+Trn Ch+Stamp duty+ other charges if any) but no deduction for "securities transaction tax".

no of days in holding if less than 365 days then STCG @ 15%, if more than 365 then LTCG @ NIL 

Entry explained above is correct, only thing is that holding period for determining LTCG or STCG is 12mths and not 365 days.

in the contract cum bill issued by the broker, transaction charges, stamp duty, service tax, STT and SEBI fees are shown separately. Do I need to open seperate ledger account in Tally to capture these charges/fees? 

yes

Thanks. But whilst it make accounting easy by considering all charges other than brokerage  charges seperately, the cost of acquistion and sale proceeds will comprise only of the rate of purchase/sale net of brokerage. Will this be acceptable to the income tax authorities?

if we have to open seperate accounts for brokerage, transaction charges, stamp duty, service tax, STT and SEBI fees, then how do you account for these expenses paid on purchases and sales too, because they are charged both ways.