Answers On Topic: stock in trade
The assessee is a partnership firm constituted by four partners having mainly stock in trade. The firm is reconstituted two partners of the firm have retired. The retiring partners are given stock in trade as their share the questions are as under: (i) The stock in trade given to the outgoing partner will be subject to capital gain or business profit, and it will be taxable in whose hands that is the hands of firm or the outgoing partner? (ii) The second question is , will it be capital gains or business profit, and income tax that has been paid,…
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Question: when capital asset converted into stock in trade tax implication on gain. understand a point of capital asset converted into stock in trade tax calculation , also here two heads tax implies one is business income and second is capital gain . for business income the tax is accordance with slab rate when the actually stock in trade sold, and in other hand capital gain arise after indexation benefit. here one question arise would i eligible for exemption for capital gain if i invested such money U/S 54,54F,54EC etc within 6 month from actual sale of such stock in…
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If any partner withdraws an item of stock in trade of a builder firm [say 1 flat] at cost, what are tax implication on firm and partner both ? 43CA/56[2]x are applicable ?
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What should be the Treatment of conversion cost where agriculture land converted in to stock. The conversion expenses like development of land and government fee for conversion paid first and later the land was converted for non-agriculture purpose. The land is treated as stock after conversion into non-agriculture. While calculating Long Term Capital Gains, the conversion cost and indexed cost of acquisition both be considered? or Only cost of acquisition is considered and cost of conversion will be considered as business expenditure?
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Partnership firm, stock in trade , retiring partners ?