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GIFT OF CAR OR SALE OF CAAR

Ashwini (ARTICLE ASSISTANT ) (195 Points)

23 March 2023

MY HUSBAND HAS PURCHASED A CAR IN HIS NAME AND NOW WANTS TO GIVE THIS CAR TO HIS DAD.WHICH IS A BETTER WAY TO SHOW SALE OF CAR OR GIFTING THE CAR TO HIS FATHER .CAR IS 10 YEAR OLD

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3 Replies

CA Rakesh Ishi (Working at Private Company) (7770 Points)
Replied 23 March 2023

Considering the age of the car, and assuming that there is no significant profit to be earned from the sale of the car, gifting the car to your husband's father may be the better option.

sabyasachi mukherjee (25988 Points)
Replied 25 March 2023

This gift above 50000 is taxable.

Aman Sachdeva (12 Points)
Replied 25 March 2023

As per explanation to Sec 56(2)(x), property means the following capital asset of the assessee, namely:
i. Immovable property being land or building or both
ii. Shares and securities
iii. Jewellery
iv. Archaeological collections
v. Drawings
vi. Paintings
vii. Sculptures
viii. Any work of art
ix. Bullion
Gift of any other property under Income Tax Act is not taxable.