Sale of car - in case of individual when no depreciation
This query is : Resolved
05 July 2016
IN CASE OF INDIVIDUAL , THERE IS NO CAPITAL GAIN TAX ON SALE OF CAR SINCE IT IS NOT A CAPITAL ASSET AS IT IS PERSONAL MOVEABLE ASSET. HOWEVER IN MY BALANCE SHEET I HAVE CAR A/C WITH 5 LAKHS IN IT AND I HAVE NOT CLAIMED DEPRECIATION ON IT. NOW I AM SELLING THE CAR AT 1.5L WHAT WILL BE THE TREATMENT OF BALANCE OF 3.5L. WILL IT BE REDUCED FROM CAPITAL ACCOUNT ?????????
05 July 2016
Are you carrying any business and the Balncesheet u r refering pertains to that business?
05 July 2016
no its individual salaried person balance sheet
05 July 2016
sale of car, its profit or loss will not be reflected anywhere in ur ITR.
In ur books, u can reduce it from Capital.
you can also charge it to ur income and expenditure account a loss of Rs 3.5 lacs which will ultimately give the same reduced capital.
In ur books, u can reduce it from Capital.
you can also charge it to ur income and expenditure account a loss of Rs 3.5 lacs which will ultimately give the same reduced capital.
05 July 2016
ok thank you...its better to directly reduce from capital account
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