Status of shares - while filing itr 4

Dear Mr. Suresh,

As per Sec.44AA(2) of  Income Tax Act if you fall into the category of persons mentioned, then you need to maintain your books of accounts. In that case you can show those shares in ITR 4 - Part A BS under Investments.

Since capital gains will be taxed on only on transfer of shares, there is no need to show the gain as per market rate. Therefore its suggested to show only cost of acquistion.

Thanks for that valueable clarification.

However I am still cofused on two points;

First of all whether to enter the total value of my entire shares that I have been holding for the concerned FY.

Secondly can I show whatever the dividends that I might have received for concerned FY, as exempt income?

Thanks

Yours

K. Suresh.

It seems that you have held the shares as investments and not a trader in shares. 

If shares are held as investment. If the shares are held for more than 1 year then it long term capital gain which is exempt and has to be shown under Exempt income schedule. And if held for less than 1 year, then they are short term capital gains and have to be shown in capital gains schedule in A - STCG (3) From sale of equity share or unit of equity oriented Mutual Fund (MF) or unit of a business trust on which STT is paid under section 111A or 115AD(1)(ii) proviso (for FII) 

If shares are held as stock: The shares will form part of stock in trade and profit on it will be the net profit

The value of shares in both cases will always be the market value of shares

Yes dividend income is exempt in either case