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Valuation of closing stock

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26 June 2014 Which method are allowed for valuation of closing stock under the Income tax act,1961? Kindly give reference of any act,circular or notification.

26 June 2014 For valuation of closing stock you have to follow AS-2.there is no provision in income tax regarding valuation of closing stock and as per AS-2 only FIFO and weighted average stock can be followed.

27 June 2014 you can take method as per AS-2. you can take one of method that suit to your business

average method
FIFO
LIFO
weighted average etc.




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