Selling leased vehicle to third party
This query is : Resolved
Vidyut Gupta
(Querist)
10 January 2020
Hi Experts, 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. The EMI of Car lease (lease rental) is deducted by employer from my salary, hence it never comes to my bank account. Which gives benefit of not paying tax of EMI amount.
Now I terminated the Car lease by paying some x amount. I want to sell this car to third party now. As the car is in name of my employer and will directly be transfer to third party, my name won't come in RC transfer process.
I will, however, get money for selling car which will be say x+y. This x+y is less the x+EMIs I paid. However, I don't have record to show EMIs I paid as it was deducted by employer. The car was used for both official and personal purpose.
Do I need to pay tax here? if yes on what amount and how can I show in ITR ?
Thanks in advance.
Now I terminated the Car lease by paying some x amount. I want to sell this car to third party now. As the car is in name of my employer and will directly be transfer to third party, my name won't come in RC transfer process.
I will, however, get money for selling car which will be say x+y. This x+y is less the x+EMIs I paid. However, I don't have record to show EMIs I paid as it was deducted by employer. The car was used for both official and personal purpose.
Do I need to pay tax here? if yes on what amount and how can I show in ITR ?
Thanks in advance.
CA R SEETHARAMAN
(Expert)
10 January 2020
No tax payable on sale of such personal effects.
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