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mehul kachariya (Querist)
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09 January 2013 Mr. A is a salaried
employee and owns a bike. He uses
the same for the purpose of
commuting to the office. Cost of the
same on 27-7-2006 when he
purchased it was Rs. 50000. He
sells this bike on 8-1-2013 for Rs.
40000.
b. Whether the loss/profit on
this sale is taxable ?
c. If no, why ?
d. If yes, why?
e. If yes, under which head of
income is it taxable ?
f. Answer all the above
questions assuming that Mr. A is
carrying on the business and uses
the bike for to and fro to office and
claims depreciation on the same.
Assumption no other assets in
that block.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 January 2013 If the asset is used for business and depreciation is claimed, then the gain if any arising out of that will be regarded as short term capital gain. = 40,000 - WDV as on 1/4/2012

mehul kachariya

mehul kachariya (Querist)
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09 January 2013 But sir which time. i m take this for business incm.

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