Taxation on winning a car & dep. on it

This query is : Resolved

CA NILESH AGRAWAL (Querist)
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15 December 2012 X is a dealer of Cement. He won a car in a lucky draw organized by the cement company in a function of all the dealers of the State. No TDS was done by the company. My questions are :
1. Does the value of the car is required to be shown as income of the X?
2. If this is to be shown as income under which head it will be taxable- Income from business or profession or income from other sources?
3. Can X claim depreciation on the value of car ?

Mohit Naithani

Mohit Naithani (Expert)
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15 December 2012 Any gift (cash/Kind) recv by assessee related with his business and Proff is taxable under the head of Business & Proff.

Yes an assessee can claim Depriciation on it if its use by him for Business purpose.

For Eg (As per v k singhania) - Mr. X is a lawer and recv car from one of his client. value of car is taxable in the hand of Mr X as income from Business and Proff.

Entry should be :

Asset A/c Dr
To Income A/c Cr.

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