Income tax on selling old smartphones and electronics
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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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Two phones and a laptop
Better safe than sorry 😄
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 ??
& your volume is considerably high. 
Bro you are appointed as next financial advisor for our finance Minister Nirmala sitharaman immediately. Congrats check your mail for G.O order 
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.
😲😯😲😯😮😲😯😮😲😵
….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 
Bhai hawala kara lo
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.
Sell without bills, no issue. It all depends inflow on volume of cash/transfers in to your banks. Be careful with cash deposits.
Is the value of the all the items sold in lakhs (like iphone, imac, ithis, ithat) and you are doing a non-cash transaction, technically yes you should pay income tax as per your tax slab. In ITR it would fall in “Income from other sources” category. And for bookkeeping you should keep the sale receipts with GST paid. Goods being sold are pre-owned or not doesn’t matter.
But the selling price of these are not same or greater than their purchase cost so how would it be considered as income ?
The value is below 1 Lac in actual
Please donate these old devices to Care Fund
There are three situations
1. If you are an individual without any business income, then selling old smart phone would not be taxable even if you are able to sell it at higher price than buying price as daily use items are specifically excluded from capital gain or loss in income tax act. The reason is if capital gain is charged on these items which is rare then law has to allow capital loss also which law setter didn’t want as these are normal sold at loss. To avoid any issue, these were excluded from tax for individuals not doing business.
2. Individual doing any business other than buying and selling used phones, if they have claimed depreciation on phone then they will be liable for short term capital gain or loss on sell of old phone. Holding period does not matter.
3. Individual doing business of buying and selling old phone, it will be normal business income or loss here.
Check section 2(14) capital assets definitions which specifically excludes personal effects (except jewellery, drawing etc). It simply means old car/phone /AC etc are not capital assets and no gain or loss would be charged or payable on sell of these assets. Even these will not be taxable under other souces.
Nirmala tai ko or ideas mat de pagal.
how many phones are we talking about