Capital Gains Chapter- 12
(c) On June 15, 20 23 Imran sold his personal car for Rs. 1,500,000. The car has been originally
purchased for Rs. 1,200,000 on September 13, 20 23.Solution:
(a) Sale of dining table set
Although there is gain on sale of dining table of Rs. 30,000. However any movable property for
personal use, except for painting, sculpture, drawing, jewellery, rare manuscript, folio, book, postage
stamps, first day cover, coin, medallion or an antique, is not chargeable to tax.(b) Disposal of machine
Since Bilal was not entitled to claim depreciation on this machine, the machine falls within the
definition of a capital asset. [S.37(5)(b)] Discarding an asset is also treated as a disposal of the asset.
[S.75(3A)] The capital gain is determined as:
Rs.
Consideration received 15 February 20 23Damages from the shipping company 850,000
Scrap value of the machine 200,000
1 ,050,000
Cost of the machine on 1 January 20 23Purchase price of the machine 1,000,000
Documentation charges incurred 25,000
(1,025,000)
Capital gain 25,000(c) Sale of personal car
A moveable asset in the personal use of the taxpayer is not a capital asset. Therefore, the gain is not
taxable [Ref. Sec 37(5)(d)]