Profit on sale of personal car

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2014 Whether profit on sale of personal car (not used in bussiness) is chargeble to tax ?
If yes under which head.
Because car is personal efects and not capital asset.

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

20 February 2014 It will be charged under Income from other sources.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

20 February 2014 car is a movable asset and hence not taxable as its not capital asset as per income tax act.but it will be taxable as income from other sources

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2014 Thank you sir.
What if there is loss in this case?
Can we set off it from income from other sources?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

20 February 2014 set off not allowed as its not capital loss.

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

20 February 2014 U cant claim set off from Loss from other sources. if the car was capital assets then only u can.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now