car loan interest & Income

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ramdas (Querist)
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24 March 2009 whether there is any provision for car rent recd from employer after deduction of tds. since employee taken car loan from finance inst.whether he can claim deduction of car loan interest u/s 24(1) or not ? please send suggestion for the same and how the calculation should be refer to our client.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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24 March 2009 Please clarify your question.
1.employer recd car rent from whom ?
2.is it like employee has purchased the car ?
3. Sec 24 talks about housing loan interest and not car loan interest.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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24 March 2009 first of all, please note that car rent is not taxable u/s 24 which is only for income from house property.

Car rent will be taxable either as business income or income from house property. Here you can claim all the expenses i.e. driver's salary, diesel, repair of car, interest on loan and also the dep of car.

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