Summary of ICDS - VIII - Securities - issued by CBDT

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....ummary of ICDS - VIII - Securities - issued by CBDT <br>News and Press Release<br>Dated:- 9-4-2015<br><BR>Income Computation & Disclosure Standards (ICDS) Issued by CBDT under power under section 145(2) of Income Tax Act, 1961 vide notification no. 32/2015, dated 31-3-2015 Purpose: Computation of Income under PGBP head and Income from Other sources head Applicability: All assessee following mer....

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....cantile accouting system W.e.f. 01/04/2015 i.e. Assessment year 2016-17 ICDS - VIII - Securities S.No. Scope of ICDS Particulars VIII Securities 1. Scope - Treatment of Securities held as Stock in trade. 2. Out of scope - Reconginition of interest & dividend on securties (covered by ICDS -IV) , Securities held by Insurance companies , Securities held by mutual fund, venture capital funds ....

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...., banks & public financial institutions. 3. Terms used - Fair value: Price of Arm length transaction of willing buyer or seller , Securities : Except derivatives , same as meaning assigned in sec.2 of SCRA, 1956. 4. Recognition and Initial Measurement of securities - At Actual Cost. 5. Actual Cost - Purchase price and all acquisition costs i.e.brokerage, fees, tax, duty or any cess. 6. In case....

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.... securities acquired in exchange of securities or other assets - Fair value of such securities received will be termed as actual cost. 7. In case of Interest bearing securities purchased which includes accrued interest - On receipt of interest after acquisition, Pre acquisition portion of interest will be deducted from the actual cost. 8. Subsequent measurement of Securities - At the year end , ....

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....securities will be value at actual cost or NRV, which ever is less. - Listed Securities 9. Comparison between actual cost or NRV will be based on categories of securities. 4 categories named Shares, Debt securities , Convertible securities and any othe securities not covered in earlier categories. 10. Cost calculation will be done using FIFO method. 11. Unlisted Securities or listed but quotes ....

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....are not regularily available , will be valud at actual cost only. 12. In subsequent year, opening balance - Closing balance as at last day of the previous year. In case new business started in previous year - Balance as at the start day of the business.<BR> News - Press release - PIB....