Tax effect on transfer of personal car by father to his son

tony varghese (.) (56 Points)

21 September 2013  

hi all,

please advice me on the below mentioned issue:

Mr A, took 3lacs and 1lac from his son and wife to purchase a car priced at Rs 20lacs.

now Mr A wants to TRANSFER the ownership of the car on his SON's name.

 

here, do we have any tax effect. Also, i understand that car, being a movable personal item, is not a capital asset and no 56(2)(viii).

is there any other provion in incometax which has any tax effect on incomes of any of the individuals mentioned above