It's a capital receipt and it wont be taxed as you have mentioned its shown separately.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Sale of furniture-air conditioners
My friend has sold his house in a high rise. he also sold furniture like beds, sofa, dining table and A/Cs to the purchaser of the house. In the agreement entered separately & notarized, agreed value for each item has been given. My Question is how the sale of Furniture/electric items will be taxed? He hasn't kept the purchase invoices of any of the items.
Asked 6 years ago in Capital Gains Tax
Sale of electronics and furniture is not taxable. So no need to worry about that
These are personal assets and thus does not liable to capital gain tax.
Dear Sir,
Hope you are doing well !!
Since furniture and electronics are for personal use it is outside the definition of capital asset , as such capital gains can not be levied . The entire receipt on sale of furniture for personal use on which no depreciation has been charged is capital receipt not liable for taxation .Refer to section 2(14) of the Income Tax Act.
No, sale of furniture/AC will not be taxed as these are not capital assets.
Hello Sir,
Furniture is excluded from the definition of capital asset. So, there is no Capital Gain on sale of furniture-air conditioners.
It will be treated as personal assets. They will be no liability on the same.
Hello,
Furniture/Electric items held for personal use by an assessee are personal effects of a person and are excluded from the definition of capital assets and hence not liable to tax.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA