Profit on Sale of Gun

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This query is : Resolved

Shankar Rao (Querist)

29 June 2009 Dear all

During 1993 I Have Purchased gun for Rs. 3000. during Feb 2009 I sold for Rs.25000
whether it is taxable income ? if so under whish head kindly clarrify

Santosh Mishra

Santosh Mishra (Expert)

29 June 2009 If the gun was classified as fixed assets are investment between the period you hold, the same shall be taxed under the head Capital Gains.
What generally happens is such type of items are treated as Security Equipment and classified as Office Equipment to clai the depreciation and hence treatemnt at the time of sale of such items accorded under section 50 of the I.T. Act.

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Sanjeev Jain

Sanjeev Jain (Expert)

29 June 2009 Hie, Shankar

Yes it is taxable as Long Term Capital Gain u/h Income from capital gain. Because every movable assets except few are Assets as defined u/s 2(47) of income Tax act.

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)

29 June 2009 It depends whether you purchased it as business assets or as personal asset. If it is personal asset then it will be ur personal effect and will not be taxable as capital gain. But if it is purchased as business asset as security equipment etc.then it is subject to depreciation and there will be short term capital gain. There could not be Long term Capital Gain.

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