Menu
Conversion of capital asset into Stock in trade
If during the year a capital asset is converted into stock in trade, then at WHAT VALUE same shall be deducted from Tax block. Please also quote the relevant section of Income tax act.
Replies (9)
Pls refer section 45(2) of income tax act
As per section 45(2) the sale consideration will be equivalent to the Fair Market Value of such asset as existing on the date of conversion. F.M.V has been defined u/s 2(22B).
Thus FMV shall be deducted from asset block
Thus FMV shall be deducted from asset block
FAIR MARKET VALUE SHOULD BE DETRRMINED IN ASCERTAINING VALUE OF STOCK IN TRADE DURING SUCH CONVERSION.
SECTION 49 HAS BEEN AMMENDED BY INSERTING A SUB SECTION WHICH STATES THAT FOR THE PURPOSE OF CONVERSION OF STK IN TRADE INTO CAPITAL ASSET INC WOULD BE CHARGEABLE TO TAX UNDER BUSINESS IN THE YEAR IN WHICH CONV HAS TAKEN PLACE..
AMMENDMENTS ARE EFFECTIVE FROM AY 19-20.
SECTION 49 HAS BEEN AMMENDED BY INSERTING A SUB SECTION WHICH STATES THAT FOR THE PURPOSE OF CONVERSION OF STK IN TRADE INTO CAPITAL ASSET INC WOULD BE CHARGEABLE TO TAX UNDER BUSINESS IN THE YEAR IN WHICH CONV HAS TAKEN PLACE..
AMMENDMENTS ARE EFFECTIVE FROM AY 19-20.
In reply to sanyasachi post -
what is query and what replied ??????? Ulta ho gaya. it's ok
@ kapadia cannot understand a simple thing.
the querist has not replied to me.
read section 49 .
@ ammendments in relevant section.
don't confuse the forum.
humbug post.
@ piyush do not send vague question
value should be the essence of your QUERY.
the querist has not replied to me.
read section 49 .
@ ammendments in relevant section.
don't confuse the forum.
humbug post.
@ piyush do not send vague question
value should be the essence of your QUERY.
In reply to sanyasahi post -
The query is for conversion of capital asset into stock in trade which is under 45(2).
Don't torture Forum by irrelevent scandalous post. Why screaming at querist ? That too despite posting ulta post.
Before hollow defence , check your ulta reply --- bcoz query is not for conversion of stock-in-trade into capital asset .
The query should be unambiguous.
it is irrelevant.
it is irrelevant.
@ Piyush
I know you are inconvenienced but then what to do. Your query is clear cut. 🕉️
I know you are inconvenienced but then what to do. Your query is clear cut. 🕉️
@ piyush
tax block means which block...?
if u clarify then .
I understand your inconvenience.
conversion of capital asset into stk in trade is taxable.
My first sentence is fair market value must be determined while conversion of capital asset into stock in trade.
tax block means which block...?
if u clarify then .
I understand your inconvenience.
conversion of capital asset into stk in trade is taxable.
My first sentence is fair market value must be determined while conversion of capital asset into stock in trade.
Recent Topics :
- Section 54F Exemption
- Would you use a free, open-source alternative to s
- Business & Finance
- Report in GSTR 1 ( Credit Note ) for Wrong GST Rat
- Reply of summons issued under section 70 of the cg
- How to Bulk GSTIN Number Verify and Validation
- OPC Annual Filing Defaults – Need Guidance t
- OPC Annual Filing Defaults – Need Guidance t
- FCGPR of a past period
- Discuss and Download CA Final Question Paper Nov 2
Related Topics :
CAclubindia
