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.
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.
CAclubindia
