Tax on proceeds from sale of car

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 I was working as a Consultant from the April 2002 till October 2007 and hence for Income Tax computation purposes, the Income was treated as INCOME from BUSINESS or PROFESSION.

 

In June 2003, I bought a Car for Rs, 3,53,240 and hence each year Depreciation was deducted for computation of taxable Income.

 

The details of the depreciation deducted each year and the W.D.V. at the end of each year was as follows

Assessment Year 2004-05 : Rs 56,518  ::: W.D.V. : Rs. 2,96,722

Assessment Year 2005-06 : Rs 47,475  ::: W.D.V. : Rs. 2,49,247

Assessment Year 2006-07 : Rs 39,879  ::: W.D.V. : Rs 2,09,368

Assessment Year 2007-08 : Rs 31,405  ::: W.D.V. : Rs. 1,77,962

Assessment Year 2008-09 : Rs 26,694  ::: W.D.V. : Rs 1,51,268

 

I started working as a full time salaried employee since November 2007 and sold off the Car that was bought in June 2003 in July 2008 for Rs 1,87,000

 

My question is : I have already claimed a depreciation of Rs 2,01,971 while I was working as a consultant and I sold of the car when I was working as a Salaried employee. In this scenario is the proceeds from the sale of the car taxable

Replies (1)

187000-151268 = 35732 will be STCG because car was used for business and profession so it will be calculated u/s 50(1) or 50(2).

Thanks,

Lovenish Bansal


CCI Pro

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