04 June 2011
Whether assessee is eligable for investment in 54EC bonds because of long term capital gain accrue or arise on conversion of land hold as investment into stock in trade?
04 June 2011
1. Yes 54EC exemption will be available against LTCG. 2. The Capital Gain will arise in the year of transfer (Actual Sale) of the converted land i.e. Stock in Trade. However, year of conversion will be considered for the purpose of calculation of LTCG. 3. Profit will be separately, calculated on the basis of Fair Market Value on the date of conversion and sales consideration received for the converted land.
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