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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