Share purchase Sale STCG

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Pivate
1492 Points Posted on 22 February 2022
sir

we purchase and sale some shares please suggest entry in books of account is correct or not and how to withdrawal STCG from sale purchase

Purchase entry.

Investment in shares Rs.14325 Dr. ( Investment)
Brokage & other exp. 20 Dr.( Investment)
SBICAP Rs.14345 Cr.( sundry creditors)


Sale entry.

SBICAP Rs.14682 Dr.(Sundry creditors)
Brokage & other exp 18 Dr.(Investment)
Investment in shares 14700 Cr.(Investment)

please suggest how to calculate STCG
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On 22 February 2022 at 19:57 Report
Replies (6)
Quick Summary
This discussion clarifies the correct accounting entries for share purchases and sales, including the treatment of brokerage and expenses. It explains how to calculate Short Term Capital Gains (STCG) on these transactions and highlights the applicable 15% income tax rate, along with potential surcharge and cess, referencing Section 111A of the Income Tax Act.

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GST Practitioner & Accounts
15150 Points Posted on 22 February 2022
Purchase Entry

Investment in Shares. A/c Dr
To SBI A/c Cr
( Investment of Shares )

Sales Entry

SBI A/c Dr
To profit on Shares. A/c Cr
To Investment in Shares A/c Cr
( sale of shares )

profit on sale of shares will be transferred to P&L

short term capital gain for the purpose of Income tax
Expense like brokerage to be included in the Cost of purchase .
( reference AS13)
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On 22 February 2022 at 21:21
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Pivate
1492 Points Posted on 22 February 2022
Sir, according to above purchase Sale could you show me how much profit I am earning and how much tax I will to pay.
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On 22 February 2022 at 21:50
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GST Practitioner & Accounts
15150 Points Posted on 22 February 2022
15% Income tax on the short term capital gains .
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On 22 February 2022 at 22:18
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3924 Points Posted on 22 February 2022
Your profit is short term capital gains for Income tax purpose .
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On 22 February 2022 at 23:19
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Pivate
1492 Points Posted on 23 February 2022
Sir
purchase shares 14345/- and Sale 14682/_ Profit Rs.337/- STCG Rs.51 it's correct way
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On 23 February 2022 at 08:48
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GST Practitioner & Accounts
15150 Points Posted on 23 February 2022
Yes, correct @ 15 % Flat rate +Surcharge + cess ,

however STT and certain conditions for STCG as per section 111A , of the Income tax act , so please refer section 111A .
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On 23 February 2022 at 14:03

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