Hello,
An assessee(individual) has no business of his own but is a partner in a partnership filing ITR-3. In his individual capacity however he does trade in shares. Will the entries for capital gain/loss, STT and other charges etc. be routed through Profit/Loss A/c or directly his Capital A/c? If the latter, will there be no entry in his Profit/Loss A/c?
Obviously the net effect will be safe since the balance of P/L A/c is also c/f to Capital A/c. But what is the correct A/cting treatment?
it totally depends upon his view that for which income he wishesh to treat as the business income but in any case he may be taxable for that ....like if he treats share trading as his business then he has to furnish his profit and loss account and the same should be c/f to capital account and then he should go for partnership income .....
regards,
Ankit
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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