I have a car loan which attracts an interest of Rs 1.2 lacs per annum. I am the proprietor of a service organization...is this loan interest exempted from Tax ?
5 Replies
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 21 October 2015
Car is used for personal purpose?
stanley
(Propreitor)
(85 Points)
Replied 21 October 2015
Basically we offer technical consultancy for IT companies, i use this mostly for meetings.
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 21 October 2015
Is it included in your balance sheet? Then you can claim deduction of interest. If it is not then you cannot.
stanley
(Propreitor)
(85 Points)
Replied 21 October 2015
Yes it is included in the balance sheet. Thanks for the clarification
Miss Rinkal
(Student)
(1309 Points)
Replied 21 October 2015
That is to be treated car used for official / business purpose and hence interest expense on loan will be allowed as a deduction
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