Loss on sale of car

loss on sale of car as per accounts is a revenue loss and as per Income tax act it is a capital loss 

Short term capital gains on transfer of depreciable assets computed  u/s. 50(2) and it is computed when there is no assest in the block or the value of block reduced to nil.

U hav to confirm whether d old car wich u hv sold was used in business and whether you had already added the asset in the block of assets and charge dep. on it.. If u hd done so, then you shall deduct the sale price of such asset from the block and calculate WDV as per Sec 43(6) threon.. Losses will be automatically adjust..

If car was used as personal, then thre will be not tax implication since it comes under personal movable effect.

Yes the car was used for business purpose. Is the loss allowable as business expenditure for the purpose of income tax.

As u stated above, Assuming that you have sold the old car and took a new 1 in the same previous year and the purchase price of the new car is more than the consideration recvd on sale of old car..

u can not claim loss on sch sold asset since the block is already in existance and WDV of wich is Re.1 and more. U have to deduct the sale price of the old car from the purchase price of the new car and the balance will be your WDV on wich u r eligable to claim depn. Now see, since the car was sold at the lower price, u will automatically have higher WDV on wich depn will b allowed to you.. In the long run the loss on sale of car will automatically be allowed oner a no. of period since u r claiming higher depn..

I AGREED WITH ABHIRUP KAR

A the time of tax computation, you will have to add back the loss on sale of car, to the profit amount as per your  audited accounts to arrive at Gross Total Income.

You have mentioned that u have one more car, that means block of asset does not cease to exist. The sale consideration have to be deducted from the the block of asset.