Tax On Car Sales
This query is : Resolved
Manikandan.A
(Querist)
21 February 2011
Dear All
My Colleague was purchased a car in 2008 and sold the car in 2011(car has been purchased under bank loan and loan repaid from his salary and he is not claiming the same in his returns).He is a salaried person and filing his returns under Income from salaries. My query is
1. Does the income from sale on car is taxable?
2.If so under what head it has to be shown?
3.If it is a capital gain, can he eligiable for claiming depreciation?
Kindly clarify my query
Thanks in advance
My Colleague was purchased a car in 2008 and sold the car in 2011(car has been purchased under bank loan and loan repaid from his salary and he is not claiming the same in his returns).He is a salaried person and filing his returns under Income from salaries. My query is
1. Does the income from sale on car is taxable?
2.If so under what head it has to be shown?
3.If it is a capital gain, can he eligiable for claiming depreciation?
Kindly clarify my query
Thanks in advance
CA PARAS BAFNA
(Expert)
21 February 2011
The income from sale on car is not taxable.
as it is being used by your friend as his personal asset.
Depreciation can be claimed on those assets
to which a person uses in his business. But in this case car is for personal use only.
as it is being used by your friend as his personal asset.
Depreciation can be claimed on those assets
to which a person uses in his business. But in this case car is for personal use only.
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22 February 2011
right.. Car used for personal purpose is not a capital asset, so no que of capital gain.
& depreciation can be claimed only if it is used for business purpose(even if partly)
& depreciation can be claimed only if it is used for business purpose(even if partly)
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