Accounting Method for Shares

Amit (Accountant) (261 Points)

08 July 2011  

My client is a  long term investor in shares and, also, sometimes does short term trading but is not full time trader.

For convenience, he uses TALLY programme and makes all buying and selling entries thru the programme sales and purchase module and so share on hand are shown as stock in hand (opening stock, closing stock like)

Is it ok to show shares in account as stock or will he be considered a trader just because of his method of accounting and benefit of exemption of L.T. C. G will be denied even where applicable because of accounting method?