Master in Accounts & high court Advocate
9610 Points
Joined December 2011
Expenses Claimable by Individuals - *Brokerage Fees*: Fees charged by
brokers for buying or selling shares. - *Transaction Charges*: Charges levied by stock exchanges or depositories for transactions. -
*Dematerialization Charges*: Charges for converting physical shares to demat form. -
*Custodian Fees*: Fees charged by custodians for holding and safeguarding securities. Expenses Claimable by Companies - *Brokerage Fees: Fees charged by brokers for buying or selling shares. -
Transaction Charges*: Charges levied by stock exchanges or depositories for transactions. -
*Dematerialization Charges*: Charges for converting physical shares to demat form. -
*Investment Management Fees*: Fees charged by investment managers for managing investments. Accounting Entries For Individuals -
*Purchase of Shares*: - Debit: Investment in Shares (asset account) - Credit: Bank/Cash (payment account) -
*Sale of Shares*: - Debit: Bank/Cash (receipt account) - Credit: Investment in Shares (asset account) - Gain/Loss on Sale of Shares (income/expense account) For Companies -
*Purchase of Shares*: - Debit: Investments (asset account) - Credit: Bank/Cash (payment account) -
*Sale of Shares*: - Debit: Bank/Cash (receipt account) - Credit: Investments (asset account) - Gain/Loss on Sale of Investments (income/expense account) Tax Implications -
*Capital Gains Tax*: Gains from sale of shares are subject to capital gains tax.
- *Tax Deducted at Source (TDS)*: No TDS is applicable on sale of shares. Accounting Standards -
*AS 13*: Accounting Standard 13 deals with accounting for investments. -
*Ind AS 109*: Indian Accounting Standard 109 deals with financial instruments and investments.
Consult a chartered accountant or tax professional to ensure compliance with tax laws and accounting standards.