Sachin sells Ferrari - is it a capital asset?

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Hi guys,

Just had a doubt. Recently Master Blaster Sachin Tendulkar sold his gifted Ferrari to an Indian businessman. Is it a capital asset and will it be subject to Capital-gains tax?

Let me further add that this Ferrari was gifted to him by Michael Schumacher, a non-resident?

What are the tax implications?

If subject to Capital Gains tax then, Coat of Acquisition is Zero right since Sachin has obtained the car through gift and had not purchased it with his own money?

 

Mohit

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On 29 June 2011 at 15:59 Report
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Helping All
10575 Points Joined March 2010

Sachin got his tax exempted from the govt. when he got the car as a gift....



It is a personal effect  as it is a movable asset for self use---  so doesnt qualify to be a capital asset for the purpose of capital gain...

so it wont be taxable...

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On 29 June 2011 at 17:49
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Helping All
10575 Points Joined March 2010

waiting for others to comment on the issue...

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On 29 June 2011 at 17:52
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B.Com CA Final CS
5270 Points Joined September 2009

i think it will be taxable

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On 29 June 2011 at 17:56
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Helping All
10575 Points Joined March 2010

How can u say its a capital asset??? please elaborate...

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On 29 June 2011 at 17:59
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Chartered Accountant
142 Points Joined August 2008
it wont be a capital asset. Thus CG not applicable.
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On 29 June 2011 at 18:26
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IPCC and CS Professional(FINAL) Student
15533 Points Joined January 2009
First of all, sachin received as a gif that car, so for him it is gift, and that time also govt. Exempt duty and custom on car of sachin, however in my opinion it is nt capital asset, i am agree with sneha .
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On 29 June 2011 at 18:36
Guest

not a capital asset and no cg tax

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On 29 June 2011 at 18:38
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Chartered Accountant
5572 Points Joined June 2010

Not a Capital Asset.

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On 29 June 2011 at 18:43
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CA IN PRACTICE
16719 Points Joined May 2011

it is not a capital asset             

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On 29 June 2011 at 18:46
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157 Points Joined February 2011

Not a capital asset So no capital gain tax.

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On 29 June 2011 at 18:55
Guest

Guys, please give me a detailed answer citing the relevant provisons of the IT Act and not in the form of Yes/No.... I request CA's to take part in this discussion and express their correct views on this issue.

 

Mohit

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On 29 June 2011 at 19:31
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CHARTERED ACCOUNTANT
353 Points Joined July 2008

Pl read sec 2(49)i.e defination of Capital Assets. Assets of personal effect is not and capital assets chargeable to tax.

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On 29 June 2011 at 19:44
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CHARTERED ACCOUNTANT
104 Points Joined March 2008

Hi MOHIT

Your question seems to be so relavnt with the latest developments.

My opinion is that Sports Car cannot be a personal asset and hence liable to capital gains tax.

As the car was gifted to Sachin, no question of indexation arise, as the aquisition cost is a BIG ZEROOOOO,

Also from the ethical point of view, it seems so unfair on part of a Sportperson of Sachin's standard to have sold the car. He could also have gifted the same to BCCI.

I am sure Sachin earns enough so as not to be dependent for his daily survival on the consideration receivable from car's sale.

JAISI JISKI SOCH, Uska Ram Dharam Woh hi Jaane.

PRAMOD

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On 29 June 2011 at 19:45
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CA
8316 Points Joined June 2009
Pramod Bhai. . . . . . . Ethics is different from law. . . . . . . Replace sachin with himself and then reply again if u want. . . . .
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On 29 June 2011 at 20:30


CCI Pro

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