A is the owner of a car. on 1/4/17 , he starts a business of purchase and sale of motor car. he treats the above car as part of the stock in trade of his new business. He sells the same on 31/3/18 and gets profit of ₹1lakh. Does he attract capital gain tax
can anybody clearly explain the above said example
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query on capital gain
Replies (10)
yes stcg is attracted
first of all car is not a capital asset as it is excluded from section 2(14) of income tax act..... 2ndly the profit of 1lakh rupees would be the business income...
endorse Jai sir view
so what will be the answer
answer is that 1 lakh will be business income.......
sir I'm asking tat will this case attracts capital gain
no brother it will not as car is not a capital asset.....
i got what you are saying...so it doesn't attracts capital gain .
yup....
thank you sir
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