In tax year 2026-27, Meenakshi converts a plot of land, which she held as a capital asset, into…

Under section 67(6), the gain on converting a capital asset into stock-in-trade is chargeable "in the tax year in which such stock-in-trade is sold", here 2028-29. The fair market value on the date of conversion is deemed to be the full value of the consideration; the later sale price is relevant only to the business profit. The conversion is treated as a transfer, so it is not tax-free.