05 July 2016
IN CASE OF INDIVIDUAL , THERE IS NO CAPITAL GAIN TAX ON SALE OF CAR SINCE IT IS NOT A CAPITAL ASSET AS IT IS PERSONAL MOVEABLE ASSET. HOWEVER IN MY BALANCE SHEET I HAVE CAR A/C WITH 5 LAKHS IN IT AND I HAVE NOT CLAIMED DEPRECIATION ON IT. NOW I AM SELLING THE CAR AT 1.5L WHAT WILL BE THE TREATMENT OF BALANCE OF 3.5L. WILL IT BE REDUCED FROM CAPITAL ACCOUNT ?????????
05 July 2016
sale of car, its profit or loss will not be reflected anywhere in ur ITR. In ur books, u can reduce it from Capital. you can also charge it to ur income and expenditure account a loss of Rs 3.5 lacs which will ultimately give the same reduced capital.
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