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Sale of Car which is booked in Pvt. Company books but in RC book it is in the name of Director

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SWAPNALI PATIL

Accounts Manager

37 Points Posted on 25 June 2021

If Car is purchased through Car Loan and it is paid by Pvt. Ltd. company. But in RC book it is in the name of the director. Company is claiming depreciation and other vehicle expenses. Now, Director want to sale this Car.

In this situation can company take amount of sale of Car or Director?

Please suggest what is best practice as per Income Tax Act?

Replies (2)

Quick Summary

A private limited company financed a car and claimed depreciation, but the RC book is in the director's name. The director now wants to sell the car. The discussion explores who is entitled to the sale proceeds – the company or the director – and the best practices under the Income Tax Act. The consensus is that the sale receipts belong to the company, and the sale should be recorded in the company's books.