An employer had provided a Car exclusively to an executive for use and after 5 years, the car is transferred from the Company's name to the Executive's name and tax on WDV is recovered. If the executive propose to sell the car after 3 months, whether it would attract income tax or being a movable asset and Car being a personal movable item, would not attract capital gain.
3 Replies
dumb Nitish
(171 Points)
Replied 13 August 2018
Car is not a capital asset since held for personal use, thus no capital gain
RATAN
(STUDENT)
(130 Points)
Replied 13 August 2018
if the car was transferred by the company to the employee for an adequate consideration and then the employee transferred it, there is no income tax on surplus as this car is "personal effect" and not a capital asset therefore attracts no capital gains. If employee gets the car without adequate consideration, then I think gift provisions will apply and he has to pay income tax at the time of acquisition of the car from the company.
Recent Topics
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- GST Invoices Series
- FILING OF ITR AY 20-21
Related Threads
CAclubindia
