Amendment to Section 2(24) w.e.f. Assessment Year 2019-2020 under Income Tax Act.
The following amendments have been made to the definition of income under section 2(24) with effect from the assessment year 20 19-20 —
Conversion of stock-in-trade into capital asset -
A new sub-clause (xiia) has been inserted in section 2(24). It is applicable in the case of conversion of stock-in-trade into capital asset. By virtue of this amendment, fair market value of such inventory will be included in income.
Compensation on termination of employment or modification of terms of employment -
A new sub-clause (xviib) has been inserted in section 2(24) so as to include any compensation or other payment referred to in section 56(2)(x) [i.e., compensation on termination of employment or modification of terms of employment] also within the definition of income.
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