Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Selling of car

Ajay Singh (Senior Accountant) (97 Points)

13 October 2011

Hi friends,

I have a car model 2005 having cost value of Rs. 500000/- and market value of Rs. 200000/-. I want to sell this car. This car is in good condition and I got a offer of Rs. 300000/-.

Kindly solve my below mentioned prolem:

1. Will there be any capital gain?

2. Is there is any problem to sold the car above market value of Rs. 200000/-.

Kindly answer my questions:

Thanks

Ajay

Reply
Follow
Share

7 Replies

ACMA Obulirajan R (M.Com, ACMA) (1119 Points)
Replied 13 October 2011

There will not be any capital gain arises and there will be no problem if you sell the car above the market rate.

Upgrade to CAclubindia Pro. Subscribe Now!

Santosh kumar (J.A.M) (73 Points)
Replied 13 October 2011

hi ajay

if sell u r car at any rate there will be no capital gain .

valji (Accounts manager-MBA) (2150 Points)
Replied 13 October 2011

agree with above car is personal assets

Nabeel (CA) (3288 Points)
Replied 13 October 2011

There won't be ny type of Capital Gain.......... nd u can also sell it above market value........

Kashish Grover ( CA-FINAL, CS-FINAL) (1671 Points)
Replied 13 October 2011

Originally posted by : Nabeel
	There won't be ny type of Capital Gain.......... nd u can also sell it above market value........

Upgrade to CAclubindia Pro. Subscribe Now!

Nitesh Matta (Nothing) (198 Points)
Replied 13 October 2011

Capital gains doesnt arise in case of personal assets. :)

CA Ksheerabthi Nathan (CA in practise) (167 Points)
Replied 14 October 2011

if u have used the car as a peronal asset then u shall not have capial gains on any value u sell the car.u can sell the car above the market price .there is no such restrictions.