11 April 2016
Dear Sir
there are two issues
1. Car is given to the company for use
2. Loan and interest on loan of car are paid through income of the director. i.e. not paid by the company
now my question is
1. car given to the company can be said transfer in the meaning of
S.2(47) of Income Tax Act, 1961
for capital gain purpose.
2. will company be allowed to claim depreciation on the same on the basis of Usage by company
please help
11 April 2016
Company cannot claim depreciation since car is not the asset of company. Company can claim running and maintenance Exps if it is used for company.
CAclubindia
