Is interest on car loan of business exmept?

This query is : Resolved

Vishwa (Querist)
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04 January 2014 I have recently started a small business having 2 labourers and want to buy a car through loan stating my father's income. Did i get exemption on car loan even if my business is in loss nd my business is not registered yet?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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04 January 2014 No since you are taking Loan in the name of father the car would be financed in the name of your father

so it would be treated as Interest is paid by your father
so you cannot claim the Interest

you can show that you are paying hiring charges to your father in the form of Interest and can take the deduction of Hiring charges