I have a Vehicle Loan from HDFC
I have debited the loan account with the whole installment amounts in the previous 2 years and not shown interest included in the installments in the previous years and thus not claimed it as deduction in income tax
Can I claim the deduction of such interest included in the installment payments of last two years in this year in income tax or is it disallowed as it is expense for previous year
Who said interest on vehicle loan is tax deductible? Its not friend. Sorry to say, your concepts are incorrect.
Int on vehicle Loan used for Biz/official purpose is Biz expenses.
You cannot show it now.
Thanks,
But I still want to know that is it deductible under Head PGBP when vehicle is used for business purpose
In case you are a professional or a business man declaring income under the head profits or gains from business or profession then the interest on car loan and depreciation could be utilised. However, in case you are a salaried individual then you would not get any deduction on this account.
But in the same year when you have paid.
Sorry for the earlier opinion. I was under the impression you were claiming it otherwise than PGBP.
Even in PGBP, the interest expense pertained to those specific years and had to be claimed in those years only. you may only claim that portion of interest as pertains to FY 2014-15 in AY 2015-16.
CAclubindia
