Yatrik Jobanputra (CA Final Student) (170 Points)
06 August 2013Hello Friends,
If an Individual's Main business is Trading in Shares and Securities, than Application made by him for an IPO will be treated as Investment or Stock Item..???
And what will be the status of the same IPO at the Allotment phase..???
Thanks in Advance.
CA Yogesh Garg
(finance )
(36 Points)
Replied 07 August 2013
| Originally posted by : Yatrik Jobanputra | ||
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If the main bussiness of Assessee is Trading than money given to purchase shares in IPO will be treated as advance application money given for purchase of shares. Upon confirmation of allotment of shares would be treated as closing stock in Balance sheet. Both of these will be applicable if Income is treated as income from PGBP.
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