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ICDS impact on Shares Held as Stock In Trade

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Tejas shah

Sweeper

123 Points Posted on 02 August 2022

Dear All,

What shall be the effects of ICDS on shares held as stock in trade as on the last day of the financial year under following scenarios and how it shall affect my business and income computation..

Business Inc. from shares- 50L

1st scenario
Closing stock of shares at cost - 25L
Market value of shares on 31st mar- 15L

2nd scenario
Closing stock of shares at cost - 25L
Market value of shares on 31st mar- 40L

Pls help how will it affect the computation..

Replies (2)

Quick Summary

This discussion explores the impact of Income Computation and Disclosure Standards (ICDS) on shares held as stock-in-trade, particularly concerning closing stock valuation. It examines two scenarios: where the market value of closing shares is lower than cost, and where it's higher. The aim is to clarify how these scenarios affect the computation of business income for tax purposes.