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Exception For Business A ssets, Dep C harged, so it is always Short Term C apital Gain Car purchased in Jan 2016 500000 Depreciated Value of Car in Books 80000 Sold in Mar 2020 100000 Period of Holding is 4 years It is More than Period of 36 Months But Still we will Calculate Short Term Capital Gain (because it is a Business Asset Short Term Capital Gain = 100000 − 80000 = 20000 Note We have Assumed that this is Car used in Business if it was Personal Car, There will not be any Capital Gain as it is not a Capital Asset

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.