Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issues.

[Mihir Bijur]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

1. In case of open position from 1st to the 20th of a month, we have two entries for Margin -one at the time of entering into the position on the 1st and then on closing the position on the 20th. In addition to that, on a daily basis entries need to be done in MTM till position is closed. Was this correct?

Got the answer to this by going through the ICAI Guidance Note. Entries have to be done daily into the account: Equity Derivatives Instruments Account for daily margin requirements.

Now, I want to know if we create separate accounts/ledgers for different expiring contracts. i.e. NIFTY Feb & NIFTY Mar etc. Or just one account NIFTY Futures?

 

[imanita]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Hi every one,

Our company started trading in stock market, and for me it is just Chinese :s
Please help me to make journal entries for the following?

-opening and transferring 1 M of cash from bank to our new margin account with broker
- Purchase of securities that cost 2 M (means our margin account is currently -1M)

-Selling all securities at 1.5 M

Thank you in advance ! :thumb:

 

[shirajroz]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Hi every one,

Our company started trading in stock market, and for me it is just Chinese :s
Please help me to make journal entries for the following?

-opening and transferring 1 M of cash from bank to our new margin account with broker
- Purchase of securities that cost 2 M (means our margin account is currently -1M)

-Selling all securities at 1.5 M

Thank you in advance ! :thumb:

What is the Accounting Software u r using ? if its TALLY, u can set it to reflect
the Stock Market transactions , P/L and Closing Stock in FIFO method.
Pls note - FIFO method is mandatory for Income Tax purposes.

 

[vineetkrsingh]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Got the answer to this by going through the ICAI Guidance Note.

The new ICAI guidance note here -
http://220.227.161.86/38253asb27888dc.pdf

supersedes the older one.

 

[RahulG87]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Hi SavantGrande Sir,
I have a query regarding Options trading. I am using Neteller as an e-wallet and i am using IQ Options platform. Now i have gone through FEMA and RBI guidelines. I wanted to know how can i safely do trade as Forex trading is kind of illegal. What is the safest way, i am quite comfortable with IQ Option broker. But as per rules converting INR into USD and trading in an foreign platform is illegal. What are the loopholes. How can i play safe while deposit and withdrawal. I am using Neteller for deposits and withdrawal. I don't have a personal CA as of now, but what do i have to do to declare profit, what do i need to have incase of they ask me where have i earned these money.

Waiting for your reply ..
Thanks in Advance, Good day

 

[princy01]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Subscribing for
Accounts queries

 

[Hemanth555]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

I have trading a/c with 3 brokers... Traded in all segments.... Nothing long term
I have a loss of over 2.5 laks in one a/c
Nearly as much loss in another a/c
and around 1 lakh loss in 3rd a/c

I missed the aug 5 2016 deadline

sep 30 deadline is only for audit cases
do i qualify for audit
will I be able to carry forward the losses ?

Pls advise
I have collected all statements... (2 bank statements are still pending)
Corp bank and canara bank make us run around multiple times even for passbook updationn or statements.... moody staff

 

[princy01]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Yes because you are in loss you should be able to get audit done and file before 30 September

 

[Hemanth555]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

I have loss in

2013-14 (small amount)
2014-15 (around 1 lac)
2015-16 (big amount for me)

I am looking for a auditor too
near my place sahakarnagar in Bangalore - 560092

I dont know if I can put my number here 9900330994
if not allowed pls delete the number

 

[princy01]

Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu

Bangalore should have lots of Chartered accountants