capital asset converted into stock intrade

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 Please guide me in the case of conversion of capital asset into stock in trade, when the capital gain rax will be attracted??at the time of conversion or at the time of sale of that stock????

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 August 2010 In the year of sale of the stock.

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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12 August 2010
In the year of sales of asset, there will be two element..First one is the Business profit and second one is capital gain tax. Both will be affected only during the year of sales of the stock in trade

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 if it is a construction company and land has been shown in the fixed asset and after putting the scheme on it, it has been shown as a stock. Now, if some of the residential unit sold and some not, then how thw capital gain to be count???

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 August 2010 Then in your case proportianate capital gains will have to be computed in the ratio of sold flats to total flats to be constructed on the land.

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