Capital Gains On Conversion of Capital Assets Into Stock-In-Trade - (New) Section 67(6) / (Old) Section 45(2)

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....¢ the asset is converted into stock-in-trade of a business carried on by that person; or • the owner simply treats the capital asset as stock-in-trade. The provision covers both: • actual conversion of the asset into stock-in-trade; and • treatment of the asset as stock-in-trade without any formal conversion process. Taxability year Profits and gain....

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....vious 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 year of conversion of capital asset into stock. NOTE:- • There must be a capital asset. â....

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....e 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 capital asset, inco....