mayuri shetty (Article trainee) (43 Points)
23 December 2008Is car insurance premium paid is an allowable expenditure under income tax? if yes then under which section? If motor car is considered as plant for TDS then can it be considered as plant for Section 31of IT tax too?
In case of claim of insurance received what will be the treatment for the purpose of Income Tax?
General Insurance claim received is an indemnity and not an income so for income tax purpose what is the treatment if the asset is a business asset or a non business asset?
praveen
(Chartered Accountant)
(6971 Points)
Replied 23 December 2008
car insurance can be taken as an expense in case of business
I dont think there is any exemption
CA.Vijay Shetty
(Chartered Accountant)
(47 Points)
Replied 23 December 2008
There is no exemption like that but it is an allowable expenditure u/s 36.However, the same can be capitalised in the year of purchase of car.
CA.Vijay Shetty
(Chartered Accountant)
(47 Points)
Replied 23 December 2008
There is no exemption like that, but it is an allowable expenditure u/s 36. However, the same can be capitalised in the year of purchase of car.
CA. AMIT BHUTANI
(JOB)
(124 Points)
Replied 23 December 2008
car insurance is an allowable expenditure so not include it in business income. therefore there is no point of exemption . exemption shall only after total income .car insurance is not a part of total income. so thanks
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