Conversion or treatment of a capital asset as stock-in-trade [Section 45(2)]

Event:
Conversion of a capital asset into stock in trade.

Year of Chargeability:
The year in which such stock-in-trade was sold. (trick- s > s ie stock sold) or otherwise transferred by him. 

Consideration:
FMV as on the date of conversion. 

Indexation
is available only up to the year of conversion.

NOTE-
-In the year in which such SIT is sold both Capital gains and business profits will result.

CAPITAL GAIN- FMV on the date of conversion (-) Cost/Indexed Cost of acquisition/Improvement
BUSINESS INCOME- Sale price of stock-in- trade (-) FMV on the date of conversion



For Budget'2018 Impact- http://amzn.to/2nQtbYu