Do you pay tax when selling a car in India? Learn these 8 facts
Published on: Oct. 9, 2025, 11:27 a.m. | Source: The Economic Times
Selling your personal car in India usually does not attract income tax. The Income Tax Act excludes personal vehicles from the list of capital assets, so any profit from selling your own car isn’t taxed. However, if the car was used for business and tax benefits were claimed, gains may be taxed. For most people, simply keep records like the Registration Certificate, insurance, and sale agreement for future reference. No GST is charged when individuals sell their private vehicles to each other. Do you have to pay income tax on selling your car?
