Treatment of business loss arise u/s 45(2) of it act
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 January 2018
Dear Sir,
Please clarify the treatment of business loss arise on conversion of capital assets into stock in trade u/s 45(2) by taking into account the FMV of capital assets on the date of conversion.
Thanks
Please clarify the treatment of business loss arise on conversion of capital assets into stock in trade u/s 45(2) by taking into account the FMV of capital assets on the date of conversion.
Thanks
Renu Goyal
(Expert)
20 January 2018
When capital asset is converted into stock in trade then capital gain/loss will arise on conversion considering fmv of such asset on conversion date.however taxable in the year in which stock in trade is actually sold. business loss/gains will arise on sale of such stock.
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