taxability of gains arising out of sale of personal effect
This query is : Resolved
Anubhuti Bhawsar
(Querist)
16 May 2010
hello sir/madam
my neighbour has sold his car( whcih a personal effect) and he is intending to save tax on such sale...in my opinion since it is a personal effect and hence not a capital asset. thus sale of the same will not give rise to capital gains.
also, since it is mentioned in "income from other sources" that any income which is not taxable under any other head shall be chargeable to tax under this head ie other sources income...whcih means any profit arising in this case will be chargeable under this head..
i m confused..please do clear my doubt as soon as possible..
my neighbour has sold his car( whcih a personal effect) and he is intending to save tax on such sale...in my opinion since it is a personal effect and hence not a capital asset. thus sale of the same will not give rise to capital gains.
also, since it is mentioned in "income from other sources" that any income which is not taxable under any other head shall be chargeable to tax under this head ie other sources income...whcih means any profit arising in this case will be chargeable under this head..
i m confused..please do clear my doubt as soon as possible..
CA Puneet Jethliya
(Expert)
16 May 2010
if the car being an asset in personal nature then the profit earned on sale of such car will be taxable under the head IOS.
so it will be not be charged as income under the head capital gain as not depreciable asset, not being used for business.
so it will be not be charged as income under the head capital gain as not depreciable asset, not being used for business.
Anubhuti Bhawsar
(Querist)
17 May 2010
thank u sir
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