income tax treatment on sale of motor vehicles

what is income tax treatment on sale of motor vehicle used in business

pl advise
Replies (4)
Sale Price-Wdv of assets= Stcg or stc loss
when the block of the asset ceases to exist
1. if the sale value of vehicle is greater than wdv, then short term capital gains
2. if the sale value of vehicle is less than wdv, then short term capital loss

when the block of assets exists
1. sale value of vehicle is greater than aggregate of wdv plus any new vehicles purchased, then stcg and the depreciation on the block will be nil

2. if the sale value of vehicle is less than wdv, then the sale value will be reduced from the wdv
whether profit on sale of motor vehicles can be considered as business profit or short term capital gain..

It cannot be considered under Business Profit. It should be considered as STCG.

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