04 July 2009
'A' has taken shares as loan from relative through demate account to settle the account with broker and subsequently shares has been return through demate account, as per CBDT circular it is not a transfer u/s 2(47) so nil taxation liability on transfer.But how and at what value entry will be passed in accounts.As the loan remains outstanding at end of the year?regarding sec 2 (47 ) as per circular no 751 of 1997 loan of shares is not transfer so capital gain tax does not arise .i wants clarification for book entry as this is friendly loan how the necessary entry @face value or @ prevailing market rate or @ cost of lender.
CAclubindia
