Dilip Khambete (104 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)
(1174 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
(104 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
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