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How does the complete tax treatment differ for gains arising from shares held as stock-in-trade vs. those held as capital assets for investment?

In the world of capital gains taxation, the treatment of gains arising from the sale of shares is influenced by whether those shares are classified as stock-in-trade or capital assets. This classification plays a significant role in determining the

“Section 45(2): What Happens When a Capital Asset is Converted to Stock-in-Trade?” Complete Guide

The Income Tax Act, 1961 contains provisions that help govern how various assets are taxed when they are transferred or converted. Section 45(2) specifically addresses the scenario where a capital asset is converted into stock-in-trade. This provision is crucial

What is the complete meaning of “capital asset” under Section 2(14), and which assets are excluded from this definition?

A capital asset is a crucial term in the context of taxation, especially when it comes to the computation of capital gains under the Income Tax Act, 1961. Understanding what qualifies as a capital asset and what does not