Tax treatment of sale of old asset.

@ Author

1. One thing is not clear from the brief; car used for personal or business purposes ?

2. We are assuming it was for 'personal use', hence 

a. Car used for personal purpose will be personal effect and not treated as capital asset as per definition in S. 2 (14) ITA therefore the question of capital gain / loss doesnot arise at all.

b. Profit / loss on sale of transfer will not be subject to any tax in present case in hand is our view. Even depreciation is also not admissible.

c. However, for IT purposes the treatement will be completely different if car was used for business purpose (which is not clear from the query).

Dear Tajobsindia

Most of us buy a personal car and then use it to drive to office. It was in my personal name but wife was using it to drive to office. She is a salaried employee.

So I guess I can cant do anything here.

Regards