Purchase and sale of shares

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.

Thanks, Sir, for replying the Transaction charges includes STT charges also or what is includes in Transaction charges

• Transaction charges and exchange turnover fees are allowable as expenses or cost additions.

• STT is not allowed as a deduction under Capital Gains, but is allowed as a deductible business expense if trading shares as stock-in-trade.

Hello Sharmaji thanks for answering. can you explain me in detail what is Stock-in-trade in case of shares.