I have shown depreciation of my personal car in fixed asset in my balance sheet for last 12 years
The current depreciation figure is 40000 in the balance sheet
I sold the car for 65000.so i have earned 25000 over and above the deprecIated price.
What is the tax treatment of the Amount which i have received?
How to pass entry in tally regarding the transaction??
Regards
Tax treatment:
Reduce 65,000 from the 15% block of assets. Excess value, if any, is charged as STCG.
Journal entry:
Bank A/c Dr. 65,000
To Car 40,000
To Profit on sale of asset 25,000
Assumed that the car is used for business purposes.
Many thanks
But i have used the car for personal use and not business purpose,. Will it change the tax treatment??.
Regards
No tax then.
Many thanks sir for your kind and prompt reply
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Thank you for your reply
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