Conversion of personal asset into stock

If it is a capital asset, then capital gains would be calculated and cost of stock to the business will be fair market value.

Read section 45 of Income tax for more info.

Sec 45(2) of the Income tax Act,1961 deals with the transfer of Capital Assets into Stock in trade. This section is an exception to the sec 45(1)

for information in detail visit:

https://profsindia.com/forum/topic/tranfer-of-assets-to-other/#post-5890