Intarest on car loan
This query is : Resolved
23 January 2013
dear sir
intarest on car loan of Rs 23355 for assessment year 11-12 is deductible or not
under sec 36? please advice me thanks...
intarest on car loan of Rs 23355 for assessment year 11-12 is deductible or not
under sec 36? please advice me thanks...
24 January 2013
If the car is used for business purposes you are entitled to claim the interest theron
24 January 2013
dear expart
first thanks to you for replies but sir
but sec 36(1)(iii)said intarest paid on borrowed capital used for the business allowed as deduction but capital borrowed
for acquirng capital assets, and intarest liablity on loan till the assets put to use
cannot allowed as deduction from assessment year 2004-2005. here car is a capital assets. am I right or wrong, sir please clear to me. thanks.....
first thanks to you for replies but sir
but sec 36(1)(iii)said intarest paid on borrowed capital used for the business allowed as deduction but capital borrowed
for acquirng capital assets, and intarest liablity on loan till the assets put to use
cannot allowed as deduction from assessment year 2004-2005. here car is a capital assets. am I right or wrong, sir please clear to me. thanks.....
24 January 2013
you are right. until the asset is put to use you will have to capitalise. In most cases a vehicle is put to use immediately once acquired and hence i had not elaborated on the point.
So interest liab. post putting into use of the vehicle is certainly allowable
So interest liab. post putting into use of the vehicle is certainly allowable
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