| Question And Answer | |
|---|---|
| Subject: | what’s the position of capital gain up to the date of conversion |
| Category: | Income-Tax |
| Querist: | CA Dr Abhay Sharma |
| Answered by: | Law Intern |
| Tags: | conversion of capital asset in to stock in trade |
| Date: | March 22, 2026 |
what’s the position of capital gain up to the date of conversion
I assume you are referring to the conversion of a capital asset into stock-in-trade. If so, u/s 45(2), the conversion is deemed to a transfer but the resultant capital gain is taxable only when the stock-in-trade is sold.
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