about car loan interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 i want to konw about the use of car loan interest to make deduction from the gross salary income while filing return through ITR-4
if Yes! than please tell me in which sec/ column it will come

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

07 August 2010 Car loan interest is not eligible deduction from Salary income

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

07 August 2010 Agreed... Car loan interest is not eligible for deduction.

Only interests on home loan / education loan gets such benefit.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

07 August 2010 agreed to both experts,

car loan interest is not eligible deduction for IT in any section but if you are using your car in business purpose other than salary income then you can take interest in P&L as expenditure.

VINOD ARORA

VINOD ARORA (Expert)
Follow

07 August 2010 This question is quite confusing. Quoting salary income but mentioning ITR form as ITR-4 which is applicable for individuals & HUFs having income from a proprietary business or profession. In case you have income from PGBP, then car loan interest may be considered as expense in P&L A/c itself.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2010 thank u very much for your reply!