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Profit on sale of asset other than specified u/s 2(14)

Tax queries 643 views 1 replies

Bonita

trainee

218 Points Posted on 05 October 2009

An asset other than those specified u/s 2(14) are sold will the net income taxable under the head other source??

To explain my question for e.g any moveable capital asset if sold at a profit will not be capital gain as it is not a capital asset ....will this income be taxable under the head other source i.e sale considertation- cost).. Pls note that the personal asset is not the depreciable asset and we are not claiming the depreciation on it , therefor the point of the STCG u/s 50 also does not arise...

Pls give your opinions...

Regards

Bonita

Replies (1)

Rajeev

www.rkmco.com

985 Points Posted on 06 October 2009

Sec 50 is deemed short term for depreciable assets .

Now if for eg , a personal car on which depreciation is not claimed is sold , profit on that car cannot be taxable , cos the govt may have reasons to believe that profit may never occur in such transcations .

similarly house hold furniture , music system tv etc sold is not taxable

the point is you will never have gains in these transcations :D the only one transcation that i am aware off which can go tax free and which can have gains is gold watch (cos its not an ornament or an apparel , hence it doesnt fall under the definition of jewellery and is tax free )

other personal effects where u can have gains are jewellery , utensils ( gold & silver) these all are taxable as capital gains