[quote=“MaverickI, post:, topic:”]
During filling my wealth statement I came across a question that should I declare my car’s original value (on which I bought it ) or show the current market value ???
Any Tax lawyer here who could suggest which would be the better option ?
If I fill it with original value , which , lets say is (- 1 lakh ) of current value and sell my car this year so then how do I will justify this extra 1 lakh in my next year wealth statement ???
Depends upon your choice. If you want to earn the profit according to the current market value of your asset, you have to mention its current market value but keep in mind that asset especially machinery depreciates over time so its market value can never be according to the new asset. But here, people try to sell their worn out useless assets especially cars with maximum profit which is totally wrong according to the financial accounting.
Tax will be declared according to your mentioned choice. If you have sold your asset, you do not need to justify it in next years wealth statement. If you consider original value and suppose to sell with 1 lac deficit, this 1 lac is the depreciated amount of your car but if you consider current market value, then you suppose to sell with 1 lac deficit, it is the loss in this scenario.