Amit (Accountant) (261 Points)
30 May 2011Mr A sells a personal effect, not being a capital asset, at a price higher than the price which he paid for it. If he makes a substantial profit (say2 lacs) out of it. I want to ask if there is any tax payable under income from other sources
And, his income from business is2 lacs in the same year, if that matters
My question, rephrased for clarity is, for what total amount is he required to pay tax (Rs. 2 lacs or4 lacs)
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 30 May 2011
If its not a capital asset than no capital gain n not at all taxable as its not an income within d definition of sec2(24).
Amit
(Accountant)
(261 Points)
Replied 30 May 2011
Thanks for reply.
My doubt is, will this profit of Rs. 2lacs from personal effect be subject to "INCOME FROM OTHER SOURCES" ? And , why not?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 30 May 2011
fo taxability such earnings shlould be an income within definition of income u/s 2(24).its not incom frm other source.
Amit
(Accountant)
(261 Points)
Replied 30 May 2011
Thanks Mr. Tushar,
U hv resolved my querry satisfactorily. I have checked out the relevent section 2(24) cited by you. Thanks a lot.
CAclubindia
