Friends what is the legal procedure to convert capital asset into stock in trade?
For ex:- I have purchase 5 house property which is capital asset on 1.04.2001 and now today I decide to do real state business and want to convert these property into stock in trade so how can I convert these house property into stock in trade
Read section 45(2) for proper knowledge of conversation
Investments in capital gain returns by the assessee will be utilized for computation in the year wherein such converted capital asset is sold.
The complete value will be determined as fair market value as on the date of conversionC
cost indexation will be computed until the year of conversion
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