Income tax on car sale

1. Was any depreciation charged over car in earlier years?

2. What was the purchase cost and WDV as in the books of accounts? Whether there was any gain due to sell?

sir he is normal person. why he will make books of accounts.

as per sec 2(14) of income tax act personal belongings are not covered under definition of capital asset and hence no LTCG is determined , however profit , if any on sale of such car will be taxed under head other sources .

However there is no or less chance for any kind of gain in sale of old car .

So, no need to show this amount in ITR,

There won't be tax over sell proceeds.

ITR would be chosen as per his income heads..... the sell of car will not have any effect over it.

MEANS HE WILL IN INCOME FROM OTHER SOURCES

BUT SIR WHEN ANY TIME INCOME TAX DEPT. WILL SENT ANY NOTICE  AFTER SEEING 7 LAKH AMOUNT IN BANK. THEN HE WILL NOT ASK THAT PERSON. WHY HE NOT SHOWED THIS AMOUNT IN ITR.

This amount is not his income or gain. It is the sell proceeds of the car (a personal asset) which he would have purchased earlier.

So he can justify the credits to his bank account by sell documents of the car alongwith original purchased documents.

Most welcome......

SIR I SALE OLD CAR  IT IS CAPITAL GAIN   I SHOW THE CAR IN BALANCE SHEET

If its business asset........ tax liability will arise (provided block of assets ceases to nil).

But if its your personal asset (be it in your personal BS), no capital gains......

I would like to add more to the query. What if Car is sold for 11lacs and the person has done TCS on same u/s 206CL. Still we can show such income from other sources?

Is there any gain? As the cars are not likely to be sold more than purchased value!!!