TMI BlogSection 45(2) - Capital Gains On Conversion of Capital Assets Into Stock-In-TradeX X X X Extracts X X X X X X X X Extracts X X X X ..... n Cost of Acquisition PGBP = Sale Price of Stock-on-trade FMV of the asset on the date of conversion Capital gain shall be taxable in the previous year in which such converted asset is sold. The amount recorded in the books of account of the business as the value of stock-in-trade is not relevant. FMV on date of conversion is relevant. The indexation of cost in above case shall be done till the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts for this purpose has been brought in Section 28 and Section 2(24) of the Income Tax Act by clauses 9 and 3 respectively of the Finance Bill. There are consequential amendments in the provisions dealing with Capital Gains in Section 49 and Section 2(42A) which are brought in by clause 18 and 3 respectively. The amendments would conclude that, at the time of conversion of stock in trade into cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|