Sachin sells Ferrari - is it a capital asset?

Sachin got his tax exempted from the govt. when he got the car as a gift....

It is a personal effect  as it is a movable asset for self use---  so doesnt qualify to be a capital asset for the purpose of capital gain...

so it wont be taxable...

waiting for others to comment on the issue...

i think it will be taxable

How can u say its a capital asset??? please elaborate...

not a capital asset and no cg tax

Not a Capital Asset.

it is not a capital asset             

Not a capital asset So no capital gain tax.

Guys, please give me a detailed answer citing the relevant provisons of the IT Act and not in the form of Yes/No.... I request CA's to take part in this discussion and express their correct views on this issue.

Mohit

Pl read sec 2(49)i.e defination of Capital Assets. Assets of personal effect is not and capital assets chargeable to tax.

Hi MOHIT

Your question seems to be so relavnt with the latest developments.

My opinion is that Sports Car cannot be a personal asset and hence liable to capital gains tax.

As the car was gifted to Sachin, no question of indexation arise, as the aquisition cost is a BIG ZEROOOOO,

Also from the ethical point of view, it seems so unfair on part of a Sportperson of Sachin's standard to have sold the car. He could also have gifted the same to BCCI.

I am sure Sachin earns enough so as not to be dependent for his daily survival on the consideration receivable from car's sale.

JAISI JISKI SOCH, Uska Ram Dharam Woh hi Jaane.

PRAMOD