Car sold on profit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2012 Sir,
Kindly tell us if car sold on profit after month of sep. are taxable or not in case of individual and dep. chargesd for whole year or not?

Nilang

Nilang (Expert)
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23 April 2012 Depreciation under The Income tax Act is allowable on wdv as at close of the year i.e.at 31st March.and hence closing wdv is to be arrived at as follows;

Opening wdv
Add:cost of acquisition of new asset acquired during the previous year falling in that block
Less:Sales consideration received/receivable for assets transferred during the previous year

hence sales value of sold car is to be deducted from wdv of block of assets before calculation allowable depreciation.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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23 April 2012 Section 2(14) Specifically excludes personal effects from the definition of capital asset.

Since car( not used for his business ) of an individual covered under personal effect. Hence NOTHING IS TAXABLE.

If used for business then taxable as explained by expert.

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