personal effects u/s 2(14)

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Mukesh Kumar Singh (Querist)
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30 June 2011 Please tell me whether gifted car used by a person is tansferred later is attracted with capital gain tax or not?
please reply

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 June 2011 1.A Car is a movable asset.

2. It is used by the assessee and his family members for personal use only.

3. It is not a jewellery, drawing or painting like thing so as to be called as a property.

4. The assessee has recd it as a gift

It can be said as a personal effect which is not taxable U/s 2(14)(ii)

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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30 June 2011 It depends whether you have capitalised and have not claimed any depreciation.. If you have claimed any depreciation then it is no more a personal effect and you will accordingly be liable to capital gains on the number of days and months and years holding.

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Mukesh Kumar Singh

Mukesh Kumar Singh (Querist)
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01 July 2011 Thanks a lot to Paras Bafna sir and C A S. S. Agarwal sir for your kind and valuable reply.

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