treatment of profit on sale of car
This query is : Resolved
29 June 2010
An individual (say X) not having his income from business and profession, sold his car at a profit of Rs. 26000. What should be the treatment of this Rs. 26000 while computing Mr. X's Taxable income?
Possibilities thought by me.
1. capital gain - but Car is not a capital asset as per sec 2(14) and so profit on sale of car cannot be taken as capital gain.
2. Taking the profit as Income from other sources
But the view of my tax teacher is that this profit is a capital receipt and it will not be taxable at all.
What is your view regarding this please let me know
Possibilities thought by me.
1. capital gain - but Car is not a capital asset as per sec 2(14) and so profit on sale of car cannot be taken as capital gain.
2. Taking the profit as Income from other sources
But the view of my tax teacher is that this profit is a capital receipt and it will not be taxable at all.
What is your view regarding this please let me know
jegannath G
(Expert)
29 June 2010
Treat the profit as income from other sources
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