Income tax on car exchange?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 I had a Nano car which I bought around 2.4 laks in 2014. Recently i bought another car for 8.6 lakhs. I gave my old car as exchange, and the showroom guy offered me 90,000 for old car. Now I came to know that he is selling my old car for 1.7lakhs. It is still in my name. So, will I be responsible for the difference amount of 80,000 which I did not get? How much tax would be calculated in such scenario?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2016 You are not responsible for the difference amount of 80,000. Have some documentary evidence that you sold the car for 90,000 to showroom guy.

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praveen

praveen (Expert)
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07 January 2016 Substance is important over mere legal form. Hence you will not be taxable for what amount you are not receiving. Make appropriate documentation to safeguard yourself.

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