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capital gains of capital asset into stock in trade sec 45(2)
if shares are converted into stock in preceding previous year. but sale s tocks in previous year. what was the rule
Replies (2)
As per provison: CG will be paid when stock is sold but calculation will be done till the year of conversion only i.e. holding period will end in the PY of conversion.
Capital Gain = Fair market value on conversion date LESS cost of acquisition.
Profit and gains of B/P = Sale price LESS Fair market value on conversion date
both capital gain and profit from sale will be taxable in the year of sale. in this case ....PY .
Profit and gains of B/P = Sale price LESS Fair market value on conversion date
both capital gain and profit from sale will be taxable in the year of sale. in this case ....PY .
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