I am retired person and frequently buy and sell shares in the market through NSE through broker. While I did make profit in trading I have suffered capital erosion because of market price crashing. The difference between sales turn over and purchase turn over is below Rs.40 lakhs and my holdings are worth around Rs.25 L based on market price. Please confirm whether I need to maintain accounts / share audit etc. I have nett basis incurred loss only because of capital erosion. I have also paid huge S.T.T. because of purchase/sales. Can you kindly clarify. I am a middle class person.
RE:Can you clarify on share trading
by Amitabh on Jul 11, 2008 11:44 AM Permalink
Just because you frequently buy and sell shares you do not become a trader.An investor does not have to maintain elaborate accounts and get any audit done.If you have short term capital gain you will have to pay tax despite erosion of capital. Till the shares are sold no loss or gain can be accounted for.
RE:Can you clarify on share trading
by mr c on Jul 13, 2008 10:13 PM Permalink
I am given to understand that Trading in Shares one can book the loss/profit based on the market price as at the end of the financial year. Please clarify. Will not freqency of buying & selling shares will be interpreted as Trading. Can one get the benefit of short term/long term gain in case the frequency is high. Can one apply LIFO (last in first out) accounting method to get the benefit of the long term capital gain & short term capital gain.
