Income tax on selling old smartphones and electronics

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Lucknow Super Giants
i.havejosh86

Hello all, when we are selling our old smartphones or electronics do we have to pay income tax on the amount which we receive even though it may be less than purchase price.

And also if we have purchased a used phone and later on we sell it at a lower price then also do we need to pay income tax on it ??

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Critic Critic
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how many phones are we talking about

Entertainer Entertainer
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Aadhar, Pan Card link karna hai kya ab se Olx/Quikr pe?

Mobile Guru Mobile Guru
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The level of paranoia these days 😄

Pro Shopping Friend Pro Shopping Friend
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There is no income here(assuming sale<purchase) so no tax, GST already paid on new ph so no GST again

Lucknow Super Giants Lucknow Super Giants
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panchabhut wrote:

how many phones are we talking about

Two phones and a laptop

Hotshot Hotshot
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bro mast bechne ka joy
whenever you think about income tax think if it can be tracked by department laughing & your volume is considerably high.

Hotshot Hotshot
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i.havejosh86 wrote:

Two phones and a laptop

laughing laughing dont take unnecessary stress bro.
Lucknow Super Giants Lucknow Super Giants
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caks2006407 wrote:

There is no income here(assuming sale<purchase) so no tax, GST already paid on new ph so no GST again

While sale do we have to prepare a bill or something as a proof of sale ??

Lucknow Super Giants Lucknow Super Giants
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getready wrote:

The level of paranoia these days 😄

Better safe than sorry 😄

Entertainer Entertainer
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i.havejosh86 wrote:

Two phones and a laptop

Are you confident enough that you will be able to sell those?

Hotshot Hotshot
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i.havejosh86 wrote:

Better safe than sorry 😄

income tax didn’t find much after demonetization joy& you think they will track back your 2nd hand electronics sale it isn’t being safe.

there is a whole market in delhi where we can buy electronics without GST/bill. laughing you get seal packed new products there & they flourish day by day.

Critic Critic
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i.havejosh86 wrote:

While sale do we have to prepare a bill or something as a proof of sale ??

Not necessary but recommended because just like selling used vehicles, if the sold product is used in some illegal activity then not having the proof of selling may result in getting entangled in police investigation for much more time compared to if you have a clear proof of selling.

Deal Captain Deal Captain
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guest_999 wrote:

Not necessary but recommended because just like selling used vehicles, if the sold product is used in some illegal activity then not having the proof of selling may result in getting entangled in police investigation for much more time compared to if you have a clear proof of selling.

He only sold phone and not his SIM

Critic Critic
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Cody wrote:

He only sold phone and not his SIM

You can’t sold your sim legally anyway & a mobile phone device used in illegal activity implicates both the owner of the device & the sim even if they are different person.

Cool Cool
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Exchange offer ka benefit amazon se buy karein aur tax ke tension se mukt ho jao

Deal Cadet Deal Cadet
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Bro you are appointed as next financial advisor for our finance Minister Nirmala sitharaman immediately. Congrats check your mail for G.O order rolleyes fearful smiling_imp imp stuck_out_tongue_closed_eyes

Deal Lieutenant Deal Lieutenant
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vkrmjeet wrote:

income tax didn’t find much after demonetization joy& you think they will track back your 2nd hand electronics sale it isn’t being safe.

there is a whole market in delhi where we can buy electronics without GST/bill. laughing you get seal packed new products there & they flourish day by day.

bro do these devices cost much lesser than what it sells on Flipkart/Amazon?

Hotshot Hotshot
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kshmr wrote:

bro do these devices cost much lesser than what it sells on Flipkart/Amazon?

much less bro.
around 20% discount you can expect.
but u loose warranty and they don’t sell phones and electronics that they can easily sell in open market.

Pro Entertainer Pro Entertainer
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pointshunter wrote:

Your username suits you.
Full josh

lagta hai Josh mein hosh kho baitha hai, apna bhai Josh… sad toungueout

Deal Cadet Deal Cadet
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GST is applicable only one time , so no GST second time.

Income tax by definition apply on profit. So if you are selling your phone higher than the bought price then you liable to pay taxes on that either in other income, or if quantity is large then through buisness income (By using common sense).

Obviously unless your second hand phone is antic or maybe some weird reason (like you are a celebrity or have crush), you will not get more price than bought price. So basically you will be selling your phone at loss. Which will not have any taxes attached to it.


Deal Lieutenant Deal Lieutenant
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I thought that a new law has been passed already 😄😄

Deal Lieutenant Deal Lieutenant
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….if ur net worth is not above 15-20 crores or ur salary or your expenses are not proportional to your declared income…and mind it the gap here is in crores…only then IT department notices anything.

But if you post critical views on BJP or RSS online regularly….beware smile

Cool Cool
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praveenpersonel wrote:

Bro you are appointed as next financial advisor for our finance Minister Nirmala sitharaman immediately. Congrats check your mail for G.O order rolleyes fearful smiling_imp imp stuck_out_tongue_closed_eyes

onion budget will be in demand

Deal Subedar Deal Subedar
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Bhai hawala kara lo 

Deal Newbie Deal Newbie
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If you have bought a device by availing gst input using your gst number then yes you are liable to pay gst if you sell your device within 5 years.

Deal Cadet Deal Cadet
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Sell without bills, no issue. It all depends inflow on volume of cash/transfers in to your banks. Be careful with cash deposits.

Deal Lieutenant Deal Lieutenant
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op adhe desh ko notice bhijwa ke manega

Deal Newbie Deal Newbie
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i.havejosh86 wrote:

Two phones and a laptop

Were they/ Are they shown as part of fixed assets in your balance sheet?

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