CBDT Notifies Rules for Computing Fair Market Value of Inventories converted to Capital Asset CBDT Notifies Rules for Computing Fair Market Value of Inventories converted to Capital Asset Chartered Accountant CA ICAI Chartered Accountants CA ICAI CAinINDIA ICAI Announcements Accounting Standards CA News ICAI Students ICAI Members Case Laws CPT IPCC Final ICAI Course CA Course ICAI Forum CA Question Papers ICAI Study Material

« Direct Tax »

Open DEMAT Account in 24 hrs
Net direct tax collection grow 7% as refunds fall sharply
GSTR-3B deadline expired: File now to avoid input tax credit loss, GST registration cancellation
ITR Filing: Income tax department shortens time limit for condonation of delay What it means for taxpayers
CBDT launches campaign to intimate taxpayers on undeclared foreign assets in ITR
ITR AY2024-25: CBDT launches campaign for taxpayers to report income from foreign sources
CBDT comes out with FAQs on Direct Tax Vivad se Viswas scheme 2024
CBDT weighs overhaul of designations for income tax officials to secure better clarity
Direct tax-GDP ratio at millennial high in FY24
CBDT comes out with FAQs on Direct Tax Vivad se Viswas scheme 2024
Tax filing: How to choose the right ITR form
Income Tax Return: How to maximise your tax refunds while filing ITR?


« Taxpayers may lose this benefit Income tax returns (ITR)...	CBDT report India inked 67 APAs in FY18... »
CBDT Notifies Rules for Computing Fair Market Value of Inventories converted to Capital Asset

September, 19th 2018
The Central Board of Direct Taxes ( CBDT ) has notified the rules relating to the determination of Fair Market Value of inventories converted into capital assets under the Income Tax Act, 2018. The Finance Act, 2018 has inserted clause (via) to Section 28 of the Income Tax Act, 1961 so as to provide that any profit and gains from the conversion of inventory into the Capital Asset or its treatment as capital asset shall be charged to tax as Business Income. It has also been provided that for this purpose the fair market value of inventory on the date of conversion or treatment determined in prescribed manner shall be deemed to be the full value of consideration. Accordingly, rules were framed for providing the manner in which fair market value of the inventory shall be determined. In view of the above, in May, the Government proposed to insert a new Rule 11UAB in the Income Tax Rules, 1962 for prescribing the manner of determination of the fair market value of the inventory which has been converted into, or treated as, the capital asset. The Board also invited suggestions on the draft notification pertaining to new Rule 11UAB of the Income Tax Rules, 1962. Now, the Rules has been notified and will be applicable from 1st April 2019.