Capital Assets

An assessee carrying on business in real estate has inherited asset as business asset and this has been accepted by the Income-tax department and income generated from his activities has been treated as business income, has converted his business asset into capital asset and wants to dispose of the same as he finds that the asset would fetch a good price in the market.

The question which immediately arises and needs an answer is “what would be the period of holding of the asset-whether it would relate back to the date when (personal) capital asset was converted into business asset a few years back or the date of conversion now from business asset back to capital asset?”.

Replies (2)

For capital gain purpose it will be the date when the asset was taken as personal asset and not the date of purchase.

please follow this link.....

https://www.caclubindia.com/forum/stock-in-trade-to-capital-asset-68574.asp

you would find the answer.....

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