Income Tax on Sale of personal Use Car

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PROP.
35 Points Posted on 29 March 2020
If a person sell his self used car after 3 years of buying then how we will calculate Income/loss on this transaction.
Can we use depreciation for income/loss calculation.
Example- I bought a car on 01.01.2017 at the cost of Rs. 8,00,000. I sold this on 31.12.2010 at Rs. 5,00,000.

Plz tell how i will calculate income/loss of this transaction and in which head i have to show this transaction in computation of Total Income.
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On 29 March 2020 at 18:56 Report
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Quick Summary
When you sell a car that you've used personally, you generally don't need to worry about income tax. According to the Income Tax Act 1961, personal-use cars are not considered capital assets. Therefore, any profit made from selling your personal car is not taxable.

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Was that car used for personal purpose ???
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On 29 March 2020 at 20:14
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Chartered Accountant
12739 Points Posted on 30 March 2020

PERSONAL CAR is not covered in definition of CAPITAL ASSETS - Sec. 2(14) of Income Tax Act 1961 

and any gain on such movable personal assets of assessee is not chargeable to TAX . 

 

NO TAX on personal car .

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On 30 March 2020 at 07:17

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