Wealth tax

This query is : Resolved

PURVI (Querist)
Follow

13 July 2013 wealth tax is calculated as on valuation date but if i am selling motor car to my friend as on 30/03/2013 i.e on one before valuation date to my friend for escaping from wealth tax.but as on 02/04/2013 he resale to me the same car. what will situation arise as per income tax and wealth tax point of view????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

13 July 2013 AS PER INCOME TAX IT WILL BE EITHER SHORT /LONG TERM CAPITAL GAIN DEPENDING ON THE PERIOD OF HOLDING OF CAR FOR FY 12-13.

FOR WEALTH TAX CAR IS NOT THERE ON VALUATION DATE HENCE NOT TAXABLE.

harleen batra

harleen batra (Expert)
Follow

13 July 2013 Car used for personal purpose is not capital asset as per income tax. Hence question of Capital gain or loss does not arise on it.

Upgrade to CAclubindia Pro. Subscribe Now!

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

13 July 2013 IN THE QUESTION ITS NOT MENTIONED WHETHER CAR IS USED FOR PERSONL ASSET OR NOT.

MY REPLY IS BASED ON ASSUMPTION THAT CAR IS USED FOR BUSINESS PURPOSE.

PURVI

PURVI (Querist)
Follow

13 July 2013 my query is: can i take your suggestion for tax planning? then what benefit i can get.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

13 July 2013 If u follow the advise then u need not pay wealth tax on car (if its taxable and used for busines)u will save at 1% of car value.

Further u can utilise this cash frm sale of car for showing exp of business n save tax.

if u repurchse it again after 2days on 1/4 then u can claim depreciation on car for more then 180 days in income tax act.