Taxability on sale of goods carrying vehicle

This query is : Resolved

T.V.Srinivas

T.V.Srinivas (Querist)
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01 April 2018 Sir, in 2015 October I have purchased Lorry(heavy goods carrying vehicle) which was used by me for transport business, I have received 15,00,000 for these for Fy-16-17,
Can I opt for 44AE ?
How can I disclose income?

later I have soled such vehicle for Rs 800,000 in OCT 2017, it's purchase price is 11,00,000

How to calculate the profit on sale of such Vehicle?
Does income earned on such sale is taxable under normal rate?
Does CAPITAL GAINS attracts? If yes
Short term / Long term

Pleas help me sir,
Thanks in advance

CA Ashish Agrawal

CA Ashish Agrawal (Expert)
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01 April 2018 Yes, you can opt for section 44AE, you can declare Income of Rs. 90,000 (or more if you wish).
After charging Depreciation @ 30% (Being Commercial Vehicle) Value of your block will be 6,54,500 (15% for 2016 being purchased in Oct 16, and 30% for 2017). Now as you have sold it for Rs. 8,00,000, Rs. 1,45,500 will be your Short Term Capital Gain.