I am a salaried employee.
I had bought a car (WagonR Lxi) in June 2003 and sold it off inJuly 2008 (after 5 years)
The total proceeds received from the sale of the old car was Rs 1,87,000
Is the money received from the sale of the old car Taxable ??
If taxable then how much tax do I have to pay.
car used for personal purpose is not capital asset hence not taxable....
| Originally posted by :JOHN | ||
| " | I am a salaried employee. I had bought a car (WagonR Lxi) in June 2003 and sold it off inJuly 2008 (after 5 years) The total proceeds received from the sale of the old car was Rs 1,87,000 Is the money received from the sale of the old car Taxable ?? If taxable then how much tax do I have to pay. |
" |
Since you are a salaried employee and the Car is not a business asset, any capital gains accruing thereon can be considered as exempt since they are personal effects of the Assessee. According to section 2(14)(ii) of the Income Tax Act.
So no Income Tax will accrue on the gains.
Yes both of the above are correct.
Car used for personal purpose is not capital asset hence no capital gains.
Even if gain had to be calculated it will be a loss as no depreciation has been charged on it and the sale value is definately less than its cost
There will be no VAT Applicability as the car sold is of personal nature and not business use.
Subrahmanyam & Sivudu CA Firm
Hyderabad
CA Inter
View Details
CA ANOOP P K & ASSOCIATES
Kozhikode
CA Inter
View Details
N J Suresh & Associates
Bengaluru
CA Inter
View Details
CCI
Pro
CAclubindia
