SECTION 45(2) - Is it applicable to Private limited Company, or is it applicable to individuals alone
4 Replies
Nitesh bind
(Student CA Final )
(12692 Points)
Replied 09 November 2018
Dear Tara,
Section 45(2) applies when Capital asset is converted into stock in trade.
Now see as per Section 2(14) capital assets means inter alia property of any kind held by assessees, whether or not connected with his business or profession.
Means for example any company has held some assets as Investment say Building and later on it starts dealing in buildings and then convert its investment into stock in trade then it is clearly possible for companies as well.
So in my opinion it is applicable for any Assessee.
Thanks.
Section 45(2) applies when Capital asset is converted into stock in trade.
Now see as per Section 2(14) capital assets means inter alia property of any kind held by assessees, whether or not connected with his business or profession.
Means for example any company has held some assets as Investment say Building and later on it starts dealing in buildings and then convert its investment into stock in trade then it is clearly possible for companies as well.
So in my opinion it is applicable for any Assessee.
Thanks.
Manish Manu
(198 Points)
Replied 09 November 2018
Sec 45(2) is applicable to all type of assessee, irrespective of the fact whether they are pvt. ltd. co. or individual
rama krishnan
(12239 Points)
Replied 10 November 2018
it's applicable to all persons including companies
Tara Khandelwal
(Student CA Final )
(298 Points)
Replied 29 November 2018
So is there any amendment for A.Y.2019-20 which says capital gain arises in the year of conversion of capital asset into stock.
Recent Topics
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
- How to reverse wrong transaction payment in phonep
- Paytm wrong transaction
- How to reverse wrong transaction payment in phonep
- Issue with refund for person who has filed for rel
- How to take ITC for October 2024 GST Payment in PM
- How to refund a wrong transaction Phone Pe?
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
Related Threads
CAclubindia
