Income tax on asset

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Tax practitioner
335 Points Posted on 28 October 2020
sale of furniture and sale of vehicle how to treat income when making income tax filing
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On 28 October 2020 at 20:26 Report
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Quick Summary
This discussion clarifies how to treat income from the sale of assets for tax purposes. If the items sold, like furniture and vehicles, are personal effects, profits are generally not taxed. However, if they are considered stock in trade or business assets, the income should be recorded in the Profit and Loss account as business income.

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Accountant
3662 Points Posted on 28 October 2020
Are you individual tax payer or run a proprietorship firm ?
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On 28 October 2020 at 20:46
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Tax practitioner
335 Points Posted on 28 October 2020
Proprietor ship firm
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On 28 October 2020 at 21:10
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285 Points Posted on 28 October 2020
What is the nature of your business , what goods are you trading ir you are in service business??
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On 28 October 2020 at 21:14
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Tax practitioner
335 Points Posted on 28 October 2020
Sale of life style items like. watch, wallet etc..
now im going to close our business so sale of all stocks and fixed assets
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On 28 October 2020 at 21:17
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Accountant
3662 Points Posted on 28 October 2020
Prepare Profit and Loss A/c, book income on cr. side of P & L A/c towards income from sale of fixed assets
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On 28 October 2020 at 21:20
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Tax practitioner
335 Points Posted on 28 October 2020
Jatinder kumar. make a separate capital gain workout is mandatory or not
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On 28 October 2020 at 21:30
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Accountant
3662 Points Posted on 28 October 2020
Not understand your query

Capital gain ?
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On 28 October 2020 at 22:06
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Tax consultant
5895 Points Posted on 28 October 2020
Are you selling your business?
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On 28 October 2020 at 22:34
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234 Points Posted on 28 October 2020
If the furniture and vehicle are personal effects, then the profits from their sale are personal income and hence there is no tax.If they are stocks in trade, then income will be from Business
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On 28 October 2020 at 23:38

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