Head of income is taxable

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when suppose indivisual purchase car used for personal purpose .After some time it's sale.In this in which head of is taxable.

Replies (5)

Income from Other source......

regards,

ratan

income from other sources

This is not chargable to any where because this is a capital nature unless income from capital gain

inconme and as per sec 2(14) of income tax act 1956 any presonal property held for personal use is not treated as capital assets.

so sale of car is not taxed in the hand of the assessee.

In my humble opinion a car held for personal purpose, if sold, attracts Capital Gains. If it were used for business it would be a depreciable asset and would not attract Capital Gains and Sale Value would have to be reduced from the WDV of the Block of assets. But in this case as it is not a depreciable asset, it would attract Capital gains. But it being a car its resale value would generally be lesser than its purchase price and hence in most cases would be a capital loss. STCL can only be set off against LTCG & STCG. LTCL can only be set off against LTCG. Sale of personal assets do attract Capital gains like sale of residential property, Jewellery, shares etc. 

car is personal effect rathar than capital goods, as car is depriciable asset, like mobile phones, electonic gadgets, tv washing machine etc. 

no stcl/ltcl/loss adjustment benefit available on car, only if u get some extra money ( premium ) on sale of car then its to be taxed as income from other sources, losses are capital loss, nowhere adjustable.


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