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Sales of personal car

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PAD V

113 Points Posted on 21 February 2020

assume Sachin purchase car on 10/10/2019 for RS 15lakhs and sold for 56lakhs on 16/12/2019
what's the tax treatment under income tax.

Replies (4)

Quick Summary

Generally, profits from selling a personal car are not subject to income tax as they are not considered capital assets. However, there are exceptions, particularly for vintage cars that appreciate significantly in value over a short period. Additionally, Goods and Services Tax (GST) may be applicable to the profit made on the sale.

Ashish Rajput

9 Points Posted on 21 February 2020

As per definition of Capital Asset definition personal movable asset is not covered. Hence gain on sale personal car is not taxable.

Kapadia Pravin

17269 Points Posted on 22 February 2020

Gain or loss on sale of personal car is a capital receipt and hence no captital gain arises on it's not a capital asset for Tax purposes.

Nandakumar K Konkar

Partner

246 Points Posted on 22 February 2020

Yes, capital gains from sale of personal car are exempt but not for vintage cars that fetch a very high value in short time as per case law: Asstt. Cit vs Narendra I. Bhuva on 12 May, 2003 [2004 90 ITD 174 Mum] (Bombay HC)