ravi singhal (CA Final) (96 Points)
19 August 2011hello friends,
I had a personal question in taxation. Actually i want to buy a motor bike. and i wanted to know that if I buy it in EMI ie: in instalments i pay interest. My question is what are the benefits I get if i am a salaried employee ( ie:regarding depreciation and interest factor) any other benefits ... please tell me
Thanks in advance
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 19 August 2011
unless the motor vehicle ( motor cycle) is used for business purpose, no benefit is available for depriciation or interest paid / EMI
it would be personal effect for salaried person,
CA Hardik Bunha
(self)
(2121 Points)
Replied 20 August 2011
hi sir,
AFTER DISCUSSION FOR SECTION 44AD, WE MEET AGAIN HERE,
ok if u want to take benifit Rise Dummy income like DIAMOND BROKERAGE INCOME OR COMMISSION INCOME
here depreciation is a non cash expenditure adjust your income till tax slab at throw this business in loss.
Actually assessee is in profit but due to depreciation effect it seen in loss. I HOPE SIR U UNDERSTAND.
I M VERY INTERESTED TO TALK WITH U. REPLY ME SIR ON hi_4_me_nxt @ yahoo.co.in
vaibhav
(CA)
(49 Points)
Replied 22 August 2011
NO BENEFIT OF DEPRICIATION IS GIVEN TO A SALARIED EMPLOYEE
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 22 August 2011
Salary income is calculated as per provisions of Section 15 to 17. Section 16 provides the dedcutions that are available while calculating salary income.
Section 16(ii): Entertainment allowance
Section 16(iii): Professional tax
So the interest and depreciation will not be considered, accordingly you will not get any deduction from salary income.
CA Jitendra Jain
(------)
(82 Points)
Replied 22 August 2011
@ Hardik Bunha... ur suggestion is good but i feel dat its mor risky if u compare wid some othr method... if d employee is in full-time employment then its very difficult to digest for ITO authority that there is any business income & wil create prblm in Scrutiny...
bettr is to show 80G deduction...... I hope u gt my point...
CAclubindia
