Fair market value of inventory defined for conversion to capital asset under amended income-tax rules, clarifying valuation methods. Amendments specify that audited balance-sheets as drawn up on the valuation date must be used for valuation documentation, and establish that fair market value, when inventory is converted to a capital asset, is: stamp-duty value for immovable property; the prescribed valuation method for jewellery, art and specified securities; and otherwise the open-market sale price on the conversion date.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Fair market value of inventory defined for conversion to capital asset under amended income-tax rules, clarifying valuation methods.
Amendments specify that audited balance-sheets as drawn up on the valuation date must be used for valuation documentation, and establish that fair market value, when inventory is converted to a capital asset, is: stamp-duty value for immovable property; the prescribed valuation method for jewellery, art and specified securities; and otherwise the open-market sale price on the conversion date.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
