Income Tax Issue on Second Hand Car?

[kunalbijlani]

I am a student and am planning to buy a civic. I am getting it for only Rs. 3-4 Lakhs. But my dad says that if we buy a bigger sedan, we will have income tax problems but he doesn't tell me what the problems will be and I don't understand that how will it be a problem as the cost of the car will be 4 lakhs only irrespective of the size of the car. Can anybody please explain? My dad does business and does not have black money.

 

[carholic]

Re: Tax on second hand cars?

I don't think your dad will be dragged in a mess by income tax if he is filing his return appropriately . As far as civic is concern i think normally now days civic is selling in range of 3-4 lakhs but don't forget the maintenance cost and spare part cost of civic which will not be in the price range of same price hatchback competitors choose wisely and welcome to TAI .

 

[kunalbijlani]

Re: Income Tax Issue on Second Hand Cars?

Even I told him the same thing. But he says that it is a big car so we will have to answer the income tax people.

 

[dodge_v1per]

Re: Income Tax Issue on Second Hand Cars?

Even I told him the same thing. But he says that it is a big car so we will have to answer the income tax people.

dude even if you have to why worry if money your buying it from is totally fair!!

 

[kunalbijlani]

Even I dont understand bro!

 

[max_demon]

Go ahead with your purchase, no issues from the Income tax perspective.
Although do consider the maintenance part, the service and spares would be priced for a 14L car not a 4L car.

 

[dhoom9]

IT is usually problematic for initial / first purchased premium cars, as information is obtained from dealers, very rarely in case of 2nd hand sale or purchase.