26 June 2019
Hello Sir/Madam, I have a query related to Car leasing. In my company we have car lease policy, where employee can lease a car which is registered in the name of my organization. I pay EMI for the car and claim income tax exemption on the EMI being paid. After the completion of car lease, i have to pay 20% of residual value to finish the lease. Post that, i can sell car directly to anyone. Sale proceed will come to my bank account. What will be the income tax implication on the money received from the car sale. I am asking this question because it is different than the car sale. In this case, the car is not registered in my name but it is registered in my company's name. I have NOC from company to sell it after paying residual amount of 20%. Can you please help with this ? Thank you,
26 June 2019
Hi Sir, thank you for your response. Can you explain how to calculate the gain here. I have paid all the EMI for 44 months and Residual value as well. Combining all amount it is more than the amount which i will receive from the sale of the car.
CAclubindia
