Income tax on car exchange?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 January 2016
I had a Nano car which I bought around 2.4 laks in 2014. Recently i bought another car for 8.6 lakhs. I gave my old car as exchange, and the showroom guy offered me 90,000 for old car. Now I came to know that he is selling my old car for 1.7lakhs. It is still in my name. So, will I be responsible for the difference amount of 80,000 which I did not get? How much tax would be calculated in such scenario?
CA R SEETHARAMAN
(Expert)
07 January 2016
You are not responsible for the difference amount of 80,000. Have some documentary evidence that you sold the car for 90,000 to showroom guy.
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07 January 2016
Substance is important over mere legal form. Hence you will not be taxable for what amount you are not receiving. Make appropriate documentation to safeguard yourself.
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