Capital gain
This query is : Resolved
07 December 2013
Is there is any capital gain if we transfer stock in trade into capital assest ??
CA DHEERAJ
(Expert)
07 December 2013
CAPITAL GAIN IS ARISE WHEN CAPITAL ASSETS IS TRANSFER
HERE STOCK IN TRADE IS EXCLUDE IN DEFENATION OF CAPITAL ASSETS SECTION 2(14),
SO YOU CONVERT YOUR STOCK IN TRADE IN CAPITAL ASSETS, THERE IS NO ANY CAPITAL GAIN,
AND AFTER CONVERSION YOU TRASNFER SUCH ASSETS
THEN CAPITAL GAIN ARISE AND YOU PAID TAX IN YOU CAPITAL GAIN
HERE STOCK IN TRADE IS EXCLUDE IN DEFENATION OF CAPITAL ASSETS SECTION 2(14),
SO YOU CONVERT YOUR STOCK IN TRADE IN CAPITAL ASSETS, THERE IS NO ANY CAPITAL GAIN,
AND AFTER CONVERSION YOU TRASNFER SUCH ASSETS
THEN CAPITAL GAIN ARISE AND YOU PAID TAX IN YOU CAPITAL GAIN
CA PARAS BAFNA
(Expert)
07 December 2013
I agree with the expert CA Dheeraj.
.
Further, the stock is valued at cost or market price , which ever is less.
.
So, there may be variation as regards the
cost of the stock and the value at which it is converted into investment.
.
Such difference, if any, has to be dealt through P&L A/c.
.
.
Further, the stock is valued at cost or market price , which ever is less.
.
So, there may be variation as regards the
cost of the stock and the value at which it is converted into investment.
.
Such difference, if any, has to be dealt through P&L A/c.
.
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