18 March 2014
If I purchase a second hand Tata Nano for Rs. 15000/- for personal use, this car will not be my capital asset.
subsequently I sell the car for Rs. 50000/- after one month.
since the car is not a capital asset, there will be no capital gain tax.
Question:
1. Will the profit of 35000/- be taxed under the head 'Income from other sources'?
2. if the sale consideration is 10000/- instead of 50000/- will the loss of 5000/- be allowed for set off ?
CAclubindia
