Sale of personal car

Friends,

A salaried assessee purchased a car for personal use 6 years back at 4 lakhs. He sold the car at 1 lakh this month. How to compute loss/profit on sale. Will there be indexation benefit given. Will depreciation be allowed. Note this is not for business use.

Regards,

Replies (5)
No capial gain will come in this case as "personal effects" that is to say, movable property. Please refer to definition of capital assets section 2(14). Regards

Dear Dipjyoti,

Under section 2(14) of the income tax act says that personal assets of movable nature does not coming in the purview of capital asset.Hence there is no capital gain arises on sale of motor car and hence no taxability.

 

Thank you for your observations.

So, there is no capital gain as it is not a capital asset. But can there be a stand that it is income from other sources if there is a profit on sale of an asset and liable to be taxed.

Regards,

Hi,

Profit or loss arises only in the case you are engaged in business/ profession. Here it is not applicable.

GAIN ON SALE OF PERSONAL ASSETS ARE NOT TAXABLE U/H CAPITAL GAIN AS THEY DO NOT FORM THE PART OF CAPITAL ASSET

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details