https://www.taxtmi.com/circulars?id=4796 Conversion or treatment of a capital asset as stock-in-trade is to be regarded as a transfer for capital gains; the fair market value on the date of conversion is deemed the full value of consideration and capital gain is charged in the year the stock-in-trade is sold. A new section 47A withdraws exemption on transfers between a company and its wholly-owned subsidiary where within eight years the asset is converted to stock-in-trade or whole ownership of share capital ceases, and section 49 fixes the transferee's cost where deemed gains are taxed. en-us Tue, 16 Oct 1984 00:00:00 +0530 Sat, 02 Aug 2008 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=4796 Conversion or treatment of a capital asset as stock-in-trade is to be regarded as a transfer for capital gains; the fair market value on the date of conversion is deemed the full value of consideration and capital gain is charged in the year the stock-in-trade is sold. A new section 47A withdraws exemption on transfers between a company and its wholly-owned subsidiary where within eight years the asset is converted to stock-in-trade or whole ownership of share capital ceases, and section 49 fixes the transferee's cost where deemed gains are taxed. Circulars Income Tax Tue, 16 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4796