If a person sell his self used car after 3 years of buying then how we will calculate Income/loss on this transaction.
Can we use depreciation for income/loss calculation.
Example- I bought a car on 01.01.2017 at the cost of Rs. 8,00,000. I sold this on 31.12.2010 at Rs. 5,00,000.
Plz tell how i will calculate income/loss of this transaction and in which head i have to show this transaction in computation of Total Income.
2 Replies
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 30 March 2020
PERSONAL CAR is not covered in definition of CAPITAL ASSETS - Sec. 2(14) of Income Tax Act 1961
and any gain on such movable personal assets of assessee is not chargeable to TAX .
NO TAX on personal car .
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