Interest deduction in income tax

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 

Replies (6)

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.

Int. Include as capital expense which u paid with installment and as u claiming depreciation on vehicle its not allow as deduction... Cost of vehicles would be total amt. Of installment including into.portion.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details