Valution of Closing Stock in case of Share Trading Buisness

This query is : Resolved

sachin (Querist)
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15 October 2007 I would like to know how will shares will be valued in share trading buisness??qutantiy at end of the year should be valued at cost or average or fifo or lifo ..is any method prescribed anywhere??if any case laws or circulars will do..

Jitender

Jitender (Expert)
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16 October 2007 apply as-2

sachin

sachin (Querist)
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17 October 2007 hey AS 2 is not applicable to Shares

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sachin

sachin (Querist)
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17 October 2007 ???????

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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19 October 2007 You have to follow one method of valuation and follow it consistenttly . Income tax Act does not prescribe any particular method .

However , to be conservative , you may follow "AT COST OR MARKET PRICE WICHEVER IS LOWER"

For shares held in DEMAT , FIFO method is to be used for finding closing inventory.There is a Board circular in this regard.