15 April 2015
I have a company having real estate business as main objective and leasing business as secondary objective. I want to convert certain land and building held as stock in trade into capital asset.
My query is whether can i give converted land and building on lease or should i hold it as stock in trade itself for giving it on lease???
15 April 2015
Your company can lease land and building which are being shown as stock in trade. . There is no provision in the Income Tax Act showing any tax incidence on conversion of stock in trade into a capital asset. . On such conversion, however, the courts have opined differently in regards to the date of acquisition of such asset. . Transfer the stock into capital assset, but to avoid any litigation at the time of sale of such assets, take the conversion date as its date of acquisition. .
16 April 2015
sir my query is after conversion of stock in trade into capital asset whether i would be able to give converted land on lease which is now my capital asset and not my stock in trade?
CAclubindia
