Hi guys 👋 in this blog lets see about stock in trade is converted into capital as a date of conversion will be considered as a date of accusation of Capital Asset computation of capital gains full value of consideration less cost of transfer net consideration less cost of accusation and improvement gross short term capital gains will be ascertained full value of consideration is the sale consideration received receivable consideration is in find the fire market value of such an article is taken to be full value of consideration cost of transfer means expenses in curd for the purpose of transfer the same fluid stamp duty brokerage Commission except cost of session refers to the price paid for acquiring the property this will also include all expenses in cut the time of session for example stamp duty or brokerage paid at the time of purchase will be included in the cost of any capital expenditure doctor acquisition which has major impact on the value of the assets shall be regarded as the cost of improvement cost of indexation applicable this is to ensure that that inflationary impact is provided to the sassy the difference between sale price and purchase price did not always be regarded as games the Rupee value has undergone challenge as well present value of the Rupee need to be identified any game over about the present value can only be regarded as green this inflationary impact as given by increasing the cost of acquisition and improvement through the cost of index released by the central government on the year 2 year basis that base year of indexation is 2002 from 2001 and the base value is 100 for asset purchased before 1st April 2001 base value shall be prewell cost of phase 1 where as it is acquired before the base year of indexation is 2001 to 2002 for all asset acquired before as the option to choose costing of aquaguation as either the actual price paid or far market value as on April 1st 2001 normally Which ever is will be chosen amendment in finance at 2020 in case of Capital Asset being movable property land or building shall not exceed stamp value prevailing formula for index to cost of session in case of asset acquired before the cost actual transfer hems no capital gains at the time of gifting on inheriting however capital gains areases in the year in which such as such as subsequently sold by Assassin.

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