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Sale of furniture

16 November 2012

I bought a furniture for Rs 20,000 FOR PERSONAL PURPOSES but i sold it for Rs 100000....will i be subject to tax of 80000 rs.......(IN MY OPINION FURNITURE IS NOT A CAP ASSET ACCORDING TO cap gains )....

can u resolve my query?

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Ashish Tailor (Consultant) (70 Points)
Replied 18 November 2012

Hy there,
According to Sec 2(14) furniture is not treated as capital asset if it is held for personal use. The profit of Rs. 80000 wont be charged under Capital Gains head.
Also Sec 56(1) says that the income/gain which is not taxable under the first four heads of income should be brought to tax under IFOS provided the income is not exempt.

So it would be taxed at normal slab rate.
Regards...