Treatment of gain on car

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Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2012 What would be the treatment of gain on car according to income tax act, if block is exist?

chaitanya cherukuri

chaitanya cherukuri (Expert)
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16 May 2012 Deduct the net consideration from Block

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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16 May 2012 1. If the sale price of the car is less than the opening WDV + Purchases, then reduce the amount of sale from the (Opening WDV + Purchases). On the balance amount depreciation shall be charged.

2. If the sale price exceeds the (Opening WDV + Purchases), then the difference shall be short term capital gain u/s 50.

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