What is the taxabilty in case sale of asset?
Mr. A partner in ABC firm Introduce his personal car in 2009 into firm. The Firm claim deprication on car during F.Y. 2009-10,2010-11,2011-12. In F.Y. 2012-13 , Mr.A withdraw his car from firm at WDV of car in F.Y. 2012-13. He latter sale the car at price above the WDV within 4 month(during this period he use car for personal use only)?
Cost of acquisition of the car would be the fair market value of the car in the year of withdrawl of car and not the WDV as per the books.
Since the car was used for personal use It cease to be a capital asset.
I don't think that there would be any profit from this transaction and if there is then it would be a capital receipt not chargeable to tax.(But you would have to satisy AO for genuineness in such case)
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