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income tax treatment on sale of motor vehicles

Satish Kavitake (389 Points)

24 September 2018

what is income tax treatment on sale of motor vehicle used in business

pl advise

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Narayan Shivhare (204 Points)
Replied 24 September 2018

Sale Price-Wdv of assets= Stcg or stc loss

rama krishnan (12234 Points)
Replied 24 September 2018

when the block of the asset ceases to exist
1. if the sale value of vehicle is greater than wdv, then short term capital gains
2. if the sale value of vehicle is less than wdv, then short term capital loss

when the block of assets exists
1. sale value of vehicle is greater than aggregate of wdv plus any new vehicles purchased, then stcg and the depreciation on the block will be nil

2. if the sale value of vehicle is less than wdv, then the sale value will be reduced from the wdv

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Satish Kavitake (389 Points)
Replied 25 September 2018

whether profit on sale of motor vehicles can be considered as business profit or short term capital gain..

CA Manish Sharma (Chartered Accountant) (57 Points)
Replied 25 September 2018

It cannot be considered under Business Profit. It should be considered as STCG.

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