Dear friends,
A doctor using a car in his profession for providing timely service and now he sold the car at loss my question is whether it is business/profession loss or capital loss for taxation purpose. can doctor claim it as a business loss?. and what will be treatment in the case of company and partnership firm.
pls. reply
thanking u.
LKC.
BROTHER IT WILL BE TREATED AS SHORT TERM CAPITAL LOSS PROVIDED THE BLOCK IS NIL. YOU CAN'T CLIAM AS BUSINESS LOSS..
HI Lucky,
If Business Asset -
Fixed Asset - Treatment under Capital Gain u/s 50, provided no other assets are there in the same Block
- Sale price will be reduced from the WDV if there are other assets in the same block (i:e cars) provided the resultant WDV is +ve
Stock in Trade - Ordinary transaction of Sale of Good.
If Personal Asset -
Capital gain shall NOT be computed since it will be treated as sale of a personal effect, which is outside the definition of CAPITAL ASSET
Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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