Whether, in computing capital gains on sale of motor car to which proviso to section 43(1) applies for the purposes of depreciation allowance, actual cost has to be historic and true cost of acquisition or actual cost as artificially reduced https://www.taxtmi.com/circulars?id=4539 For capital gains on sale of a motor car, the historic and true cost of acquisition is to be taken, notwithstanding the proviso that limits "actual cost" for depreciation purposes. The definition of "actual cost" in the income provisions is confined to sections relating to business income and depreciation; it should not be extended to capital gains computation. Written down value and proportionate adjustments apply for depreciation and related business profit adjustments, but the full purchase cost governs capital gains calculation. en-us Thu, 13 Jun 1974 00:00:00 +0530 Wed, 30 Jul 2008 14:02:00 +0530 TaxTMI RSS Generator Whether, in computing capital gains on sale of motor car to which proviso to section 43(1) applies for the purposes of depreciation allowance, actual cost has to be historic and true cost of acquisition or actual cost as artificially reduced https://www.taxtmi.com/circulars?id=4539 For capital gains on sale of a motor car, the historic and true cost of acquisition is to be taken, notwithstanding the proviso that limits "actual cost" for depreciation purposes. The definition of "actual cost" in the income provisions is confined to sections relating to business income and depreciation; it should not be extended to capital gains computation. Written down value and proportionate adjustments apply for depreciation and related business profit adjustments, but the full purchase cost governs capital gains calculation. Circulars Income Tax Thu, 13 Jun 1974 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4539