GENERAL KNOWLEDGE

GK

TAXES IN INDIA

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Conversion of capital asset into stock in trade will result into capital gain of the previous year:
A
In which such conversion took place
B
In which such converted asset is sold or otherwise transferred
C
All of these
D
None of these
Explanation: 

Detailed explanation-1: -Example 1: An assessee who is trading in shares transfers some of his stock in trade into capital asset by deciding to hold it as an investment. There is no business income at the time of conversion. It will be sold at the later stage and pay tax on the profit as capital gain instead of business profit.

There is 1 question to complete.