Dilip Khambete (98 Points)
15 August 2023I have shown depreciation of my personal car in fixed asset in my balance sheet for last 12 years
The current depreciation figure is 40000 in the balance sheet
I sold the car for 65000.so i have earned 25000 over and above the deprecIated price.
What is the tax treatment of the Amount which i have received?
How to pass entry in tally regarding the transaction??
Regards
Manish
(CA)
(1122 Points)
Replied 15 August 2023
Tax treatment:
Reduce 65,000 from the 15% block of assets. Excess value, if any, is charged as STCG.
Journal entry:
Bank A/c Dr. 65,000
To Car 40,000
To Profit on sale of asset 25,000
Assumed that the car is used for business purposes.
Dilip Khambete
(98 Points)
Replied 15 August 2023
Many thanks
But i have used the car for personal use and not business purpose,. Will it change the tax treatment??.
Regards
militen
(6 Points)
Replied 17 August 2023
In many jurisdictions, a gain on the sale of a capital asset, such as a personal automobile, is treated as a capital gain. Capital gains may be subject to capital gains tax, which may vary depending on your location and the specific tax laws in your country. The tax rate and tax treatment may differ for short-term and long-term capital gains. Sometimes you want to hide from everyone and play in online casinos, by the way I wonder what https://casinosanalyzer.com/online-casinos/ethiopian-birr-etb say about casinos. You should consult a tax professional to determine the exact tax treatment and the amount of tax you may pay on the gain. They can help you understand the specific tax rules applicable to your situation and guide you through the necessary reporting and tax payment procedures.
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