Taxability of used car

Car is not a capital asset since held for personal use, thus no capital gain

attract STCG/STCL

if the car was transferred by the company to the employee for an adequate consideration and then the employee transferred it, there is no income tax on surplus as this car is "personal effect" and not a capital asset therefore attracts no capital gains. If employee gets the car without adequate consideration, then I think gift provisions will apply and he has to pay income tax at the time of acquisition of the car from the company.