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Depriciation on car

riddhi (student) (85 Points)

22 September 2015

can depriciation on car can be claimed on income under the head ios when the assessee is having interest income only from loans given as unsecured loan??

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CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 22 September 2015

No. Under the head, "income from other sources", you can claim only those expenditures which you have incurred for the purpose of earning the income chargeable under the head "Income from other sources". So in your case, the answer is NO

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riddhi (student) (85 Points)
Replied 22 September 2015

Cant we show that the car is being used for collecting the interest income??

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 23 September 2015

Depreciation is allowed usually only on Buildings, Machinery, Plant and Furniture when you let them on rent.

In your case, it depends on how that interest income is earned. Is it a Bank interest or you have lent money to some indivudals and received interest on it?