https://www.taxtmi.com/article/detailed?id=1298 Conversion of stock in trade into a capital asset does not itself give rise to capital gain; gain arises on subsequent sale. If sold later, profit will be capital gain and long term status is determined by reckoning holding from original acquisition while an item was stock in trade. Shares converted to investment may still benefit from exchange traded equity exemptions where applicable, and indexation and long term capital gains treatment can be available subject to holding period rules. en-us Mon, 23 May 2011 23:01:44 +0530 Tue, 24 May 2011 00:46:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1298 Conversion of stock in trade into a capital asset does not itself give rise to capital gain; gain arises on subsequent sale. If sold later, profit will be capital gain and long term status is determined by reckoning holding from original acquisition while an item was stock in trade. Shares converted to investment may still benefit from exchange traded equity exemptions where applicable, and indexation and long term capital gains treatment can be available subject to holding period rules. Articles Income Tax Mon, 23 May 2011 23:01:44 +0530 https://www.taxtmi.com/article/detailed?id=1298