Tax On Car Sales
This query is : Resolved
21 February 2011
Dear All
My Colleague was purchased a car in 2008 and sold the car in 2011(car has been purchased under bank loan and loan repaid from his salary and he is not claiming the same in his returns).He is a salaried person and filing his returns under Income from salaries. My query is
1. Does the income from sale on car is taxable?
2.If so under what head it has to be shown?
3.If it is a capital gain, can he eligiable for claiming depreciation?
Kindly clarify my query
Thanks in advance
My Colleague was purchased a car in 2008 and sold the car in 2011(car has been purchased under bank loan and loan repaid from his salary and he is not claiming the same in his returns).He is a salaried person and filing his returns under Income from salaries. My query is
1. Does the income from sale on car is taxable?
2.If so under what head it has to be shown?
3.If it is a capital gain, can he eligiable for claiming depreciation?
Kindly clarify my query
Thanks in advance
21 February 2011
The income from sale on car is not taxable.
as it is being used by your friend as his personal asset.
Depreciation can be claimed on those assets
to which a person uses in his business. But in this case car is for personal use only.
as it is being used by your friend as his personal asset.
Depreciation can be claimed on those assets
to which a person uses in his business. But in this case car is for personal use only.
Message likes :
1 times
22 February 2011
right.. Car used for personal purpose is not a capital asset, so no que of capital gain.
& depreciation can be claimed only if it is used for business purpose(even if partly)
& depreciation can be claimed only if it is used for business purpose(even if partly)
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
