Tax exmpetion for personal loan used for buying an owned car

Ajit Patil (Technical Manager) (26 Points)

02 August 2016

Hi Gurus,

Recently I had taken a personal loan from a private lender to buy an owned car.

I have all the valid proofs of buying the car and even my lender issues me interest certificate.

In this regards I would like to know if I can claim any kind of exemption in Income Tax.

Thank you for your kind help and I am grateful to you.

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5 Replies

CA. Sunil Gokhale (Teacher) (1484 Points)
Replied 02 August 2016

If you have business/professional income then you can claim interest as expense.

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 02 August 2016

Are you owner /partner in any business?

Ajit Patil (Technical Manager) (26 Points)
Replied 03 August 2016

Sunil, Udgam,

Thank you for your reply and appreciate your swift response on my query.

I am a salaried person working in private limited company with yearly income more than 15 lakhs per annum.

What you said is possible in my case?

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 03 August 2016

Nah, there is no consideration in your case.

Ajit Patil (Technical Manager) (26 Points)
Replied 03 August 2016

Thanks for clearing my doubts Udgam. I am really grateful to you.

I better start my own business now.

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