Hello Sir,
I purchased a car on 01/10/2014 for Rs. 650000/-. Since then i am claiming depreciation on that. Now i am planning to sold it in next month for Rs. 500000/-.
So my question is what is the tax implication? Is there any exemption available if i purchase another car from the said sale proceed?
Please help in this regards.
Thanking you.
He is Individual
Thanks. But is there any exemption available if i invest sale proceed in purchase of new car?
If you do not have any other asset in the 15% (Machinery) category and if you do not buy a new car, you will have to pay short term capital gains. If you buy a new car, the block would not be zero. You will add the value of new car to the existing block and reduce the value of sale proceeds and continue to claim depreciation. No capital gain or loss if the block is not zero or if there is atleast one asset in the block.
@ Rashmimam can i ask how u calculate 45000/- as Capital Gain?
The capital gain computation is not correct.
CAclubindia
