Depreciation for non business use assets

If you're maintaining your personal accounts in detail, then think of the car as a mutual fund investment, i.e. no change in value until it's sold.

You list the item under movable assets at the cost price. And it sits there unchanged until you sell it. 

At the time of sale, simply account for the difference under capital withdrawn (99.99% of the time you're going to get less money from selling the car than what you paid for it). So technically there is no loss in terms of tax treatment.

Originally posted by : Aniket Kumar
	What if I have been depreciating it for last 2 years?

Have you been claiming that as an expense to reduce your tax liability?

If so, then naughty boy! Stop doing that!