We want to convert our stock (properties) into investment in property as on 31.03.2018.
How to report it in ITR & form 3CD (TAX AUDIT) as we can't record it as sale of stock. But in case we make the stock zero with out recording any sale it may be an objection by department that how can your closing stock be zero with any sale.
Where can we report this in Income tax return & Trading & Profit and loss A/c so that no objection will be created.
Kindly revert back.
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conversion of stock in trade to investment (Capital asset)
Replies (6)
if you convert stock into capitalasset then the difference between the fair market value and the value at which it is recorded will be treated as capiatal gain
no it is not the case u r thinking of
u r talking about conversion of capital asset into stock
u r talking about conversion of capital asset into stock
the same applies for stock into capital asset
no kindly clear your mind
or refer any section/rule/notification as proof
or refer any section/rule/notification as proof
I answered the query based on the situation that prevailed before finance bill 2018. however in finace biil 2018there has been a insertion of a new clause (via) that provides that the fair market value of inventory as on the date on which it is converted into, or treated as a capital asset determined in the prescribed manner shall be charged to tax as business income.
I hope this should solve your question.
but stock is not a capital asset
how can capital gain arise on its conversion into capital asset
there is no such provision in the act till finance bill 2018,
hence I think there is no taxability arise in my case where stock is converted into capital asset
how can capital gain arise on its conversion into capital asset
there is no such provision in the act till finance bill 2018,
hence I think there is no taxability arise in my case where stock is converted into capital asset
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