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Other sources doubt
I have a personal car that costs 8 lakh . I know capital gain will not be applicable on that . suppose I sold it for 10lakh will 2 lakh be taxable in the head income from other sources .
Replies (6)
Quick Summary
Yes, it will be taxable u/h. IFOS.
Thank you sir
You are welcome.
I would like to differ. Motor car used for personal purposes is a personal effect excluded specifically for taxation. So the difference of 2 lakhs being profit on sale of personal effect won't be taxed at all and is outside the ambit of income tax
Though it is disputable issue...
Let me quote the argument of ITO in such case.. Case was opened based on TCS not claimed...
1. No personal assts are sold at profits specifically a Car.
2. Car is personal asset and is out of tax ambit when an assessee receives it as gift, but when the same is sold at profits over and above the original cost paid by donor, tax liability arises over the difference.
3. Can you provide any case law in favor of your claim?
I think personal assets might not be capital assets and can not apply capital gain provisions.
But it is taxable under the head income from other sources as said by above members
But it is taxable under the head income from other sources as said by above members
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