If i sold my car for 4Lacs this year. It was purchased 2 yrs back for 5lacs. How can find capital gain. what role will be taken depreciation while calculating capital gain generally and this case too? Please give a clear way to calculate capital gain in all cases too...
16 July 2011
Do Clear out whether the Car has been used in business / profession or not ... i am assuming that the car is used in Business and Profession then 1) Compute the WDV as per Income Tax Act of Block of assets 2) Deduct the value in 1 above from Net Sales consideration 3) If Sales > WDV the resultant is STCG as per Section 50. Regds Ankit Gulgulia
16 July 2011
Hi Dhanapal, there wont be any capital gain on the sale of motor car as motor car is not a capital asset if u are using for your personal use. but if u are using the same for your business the wdv will be reduced from the sale consideration and, 1) if this is the only car in the block, the block ceases to exit, so there will be a short term capital gain or, 2) if there are other assets in the block there will not be any capital gain as block is still existing or,
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