what is income tax treatment on sale of motor vehicle used in business
pl advise
4 Replies
rama krishnan
(12244 Points)
Replied 24 September 2018
when the block of the asset ceases to exist
1. if the sale value of vehicle is greater than wdv, then short term capital gains
2. if the sale value of vehicle is less than wdv, then short term capital loss
when the block of assets exists
1. sale value of vehicle is greater than aggregate of wdv plus any new vehicles purchased, then stcg and the depreciation on the block will be nil
2. if the sale value of vehicle is less than wdv, then the sale value will be reduced from the wdv
1. if the sale value of vehicle is greater than wdv, then short term capital gains
2. if the sale value of vehicle is less than wdv, then short term capital loss
when the block of assets exists
1. sale value of vehicle is greater than aggregate of wdv plus any new vehicles purchased, then stcg and the depreciation on the block will be nil
2. if the sale value of vehicle is less than wdv, then the sale value will be reduced from the wdv
Satish Kavitake
(395 Points)
Replied 25 September 2018
whether profit on sale of motor vehicles can be considered as business profit or short term capital gain..
CA Manish Sharma
(Chartered Accountant)
(57 Points)
Replied 25 September 2018
It cannot be considered under Business Profit. It should be considered as STCG.
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