Taxation of profit on sale of personal effects
This query is : Resolved
21 October 2017
My client has effected the following transaction:
1) September 2014: purchased car from his employer for Rs 46500/-
2) June 2017: sold car for Rs 9 lacs
During the period September 2014 to June 2017, car was used for personal and family use only. No business use or depreciation charged.
Taxation: in my estimation, the gain of Rs 8.53 lacs on sale of car is not liable to tax as motor vehicle is deemed to be a personal effect and not a capital asset. The gain is not chargeable under any head of the income tax. Request my fellow professionals to share their opinion in the matter.
Thank you.
1) September 2014: purchased car from his employer for Rs 46500/-
2) June 2017: sold car for Rs 9 lacs
During the period September 2014 to June 2017, car was used for personal and family use only. No business use or depreciation charged.
Taxation: in my estimation, the gain of Rs 8.53 lacs on sale of car is not liable to tax as motor vehicle is deemed to be a personal effect and not a capital asset. The gain is not chargeable under any head of the income tax. Request my fellow professionals to share their opinion in the matter.
Thank you.
21 October 2017
Sale of car is not liable to tax.
Personal Effects of the assessee (Cars, furniture, wearinf apparel held for his personal use or for personal use of any of his family member dependent upon him), however Jewellery, archaeological collections, drawings, paintings, sculptures or any work of art are treated as capital assets.
Personal Effects of the assessee (Cars, furniture, wearinf apparel held for his personal use or for personal use of any of his family member dependent upon him), however Jewellery, archaeological collections, drawings, paintings, sculptures or any work of art are treated as capital assets.
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