Claiming depreciation for the car used for my professional activity

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This query is : Resolved

BIKAS DAS (Querist)

11 June 2015 I'm an engineer and have left my job in Dec 2005. Since then, I've been working as a consultant. Accordingly, my major source of income is from consultancy services and I'm filling IT return under the head income from business or profession. In Feb 2013, I purchased an SUV for my professional movement in my own name. Ironically, my main source of income from this professional activity reduced substantially from the end part of 2013 and during FY 2014-15, it has come down further. My second source of income is from a house property which is in my own name. During FY 2013-14, I could manage the car emi and expenditures from the income from HP. But this year, it's becoming difficult to manage the expenses and I'm hopeful of improvements in the situations during coming years. My specific queries are : 1. Can I claim the interest portion of the car emi as business expenditure? Earlier, I didn't feel its necessity. 2. Can I claim depreciation against this SUV which is intended. for sole professional use? (We have a separate car for family movement) 3. Earlier, (during FY 2013-14) neither I've shown interest component of the said SUV emi as expenditure nor claimed any depreciation on it. Would it now be acceptable to IT Dept? 4. Net income from my profession wold be negative, considering both the aforementioned interest component and depreciation part. Can I set off this loss against the income from HP? This can give me a great relief, if accepted. Thanks in advance in anticipation of a response. Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 June 2015 1 Yes it can be claimed as business expenditure.
2 Yes depreciation can be claimed.
3 Not a problem it will be accepted.
4 Yes the net loss can be set off against income from HP.