Section 45(2) - Capital Gains On Conversion of Capital Assets Into Stock-In-Trade

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..... Cost of Acquisition PGBP = Sale Price of Stock-on-trade - FMV of the asset on the date of conversion Capital gain shall be taxable in the previous year in which such converted asset is sold. * The amount recorded in the books of account of the business as the value of stock-in-trade is not relevant. FMV on date of conversion is relevant. * The indexation of cost in above case shall be done .....

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..... tment as Capital Asset. The amendments for this purpose has been brought in Section 28 and Section 2(24) of the Income Tax Act by clauses 9 and 3 respectively of the Finance Bill. There are consequential amendments in the provisions dealing with Capital Gains in Section 49 and Section 2(42A) which are brought in by clause 18 and 3 respectively. The amendments would conclude that, at the time of .....

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