Computation of capital gain

On the date of Aquisition to the date os coversion capital asset.on the date of conversion will became stock in trade.

Capital gain = Take FMV on the date of conversion as sale considaration for capital gain(cost of aquisition - FMV)

Business income = (FMV on the date of conversion - actual sale value.)

tat correct sir,

but in this case in total land much more sites are still pending for sale.................?

Q1. wat is the cost for such sites.......................?

Q2. we have to proporinately on site portion ................................. ?

PAY CG tax only on sold part,unsold land cpaital gain shall be paid when it is sold.(Proporinate calcultion)

WHEN CAPITAL ASSET IS CONVERTED INTO SIT, IN THAT P.Y IT IS REGARDED AS TRANSFER BUT CAPITAL GAIN WILL ARISE IN THE YEAR WHEN CONVERTED CAPITAL ASSET IS SOLD.METHOD FOR CALSULATION IS:

FOR CAPITAL GAIN

CONSIDERATION PRICE: MARKET VALUE ON THE DATE OF TRANSFER

LESS:COA/INDEXED COA

LESS:COI/INDEXED COI

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CAPITAL GAIN(SHORT OR LONG TERM AS THE CASE MAY BE)

FOR BUSINESS INCOME:

SALE PRICE - MARKET VALUE AS ON DATE OF TRANSFER= BUSINESS INCOME OR LOSS AS THE CASE MAY BE.