Capital or revenue nature

This query is : Resolved

gopal (Querist)
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26 November 2014 I am a dealer and have received a car from a company as gift for achieving sales target.

Is the receipt of car in my hands taxable? If yes, then under which head of income?

Also, what will be the nature of receipt for me as a dealer. Shall I treat the car as capital receipt and show it as an asset Or, credit the same as a revenue receipt.

Kindly specify the relevant section and case law(if any).

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2014 section 56(2)(vii)(c) shall come into play.
The fair market value of the car shall be regarded as income from other sources. (The catch in this is if the car is given to dealer in individual capacity or dealer's business?)

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Rupesh Jain

Rupesh Jain (Expert)
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26 November 2014 it taxable under the income from business as it received for getting the business target.

other wise under income form other sources.

gopal

gopal (Querist)
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07 May 2015 This is received in dealers capacity.

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