https://www.taxtmi.com/forum/issue?id=1478 Conversion of a capital asset into stock-in-trade does not create immediate tax liability; tax is chargeable only in the previous year in which the stock-in-trade is sold or otherwise transferred. For computing capital gain at the time of sale, the fair market value on the date of conversion is deemed to be the full value of the consideration, and capital gain and business profit must be calculated accordingly. en-us Wed, 09 Sep 2009 17:06:14 +0530 Thu, 23 Jan 2025 15:58:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1478 Conversion of a capital asset into stock-in-trade does not create immediate tax liability; tax is chargeable only in the previous year in which the stock-in-trade is sold or otherwise transferred. For computing capital gain at the time of sale, the fair market value on the date of conversion is deemed to be the full value of the consideration, and capital gain and business profit must be calculated accordingly. Discussion-Forum Income Tax Wed, 09 Sep 2009 17:06:14 +0530 https://www.taxtmi.com/forum/issue?id=1478