Business return or salary return file

Hi,

You can take the Interest  portion out of EMI as your business expense. Depreciation should be taken at IT Dep rates.

If the vehicle is used for cab services, please consider dep @ 30% else @ 15%. Also please add the relevant exp incurred during the purchase of vehicle to its gross block before you depreciate.

Suri,

and certainly , you need to file ITR 4.

Vehicle pur on 5.6.2012 so depriciation calcuated full year or 9 months ,,insuance ,rto expense this expenses included in cost of the asset then under P& L its shoen or not???

As per IT Act, if an  asset is put to use for more than 180 days, then you can claim 100% dep rate. Hence you can take total depreciation instead of pro rata basis.

You cannot show the insurance / RTA expense again in P&L once you capitalise.

Suri.

Insurance is on renewal basis so it is capitalised or expenses???

EMI paid in cash so are interst allowed as expense ???

Its a choice which you can choose. Either you can capitalise else you can straightway hit the P&L.

Anyways insurance exp from the second year wil hit only P&L. To maintain consistency, you can do the same even in first year also.

All business exp paid in cash are limited by sec 40A(3) read with rule 6DD (Max of 20k per day). As the EMI is 11000, i think interest would be around 7k. Hence there is no problem even if you pay the EMI in cash.

Suri