deduction u/s 32 on first insurance???

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CA Lokesh Pokharna (Querist)

15 August 2010 if a assesee buy car on 25-9-2009 & made first insurance on 5-10-2009.....how much deduction he can get acr. to tax laws?
if car cost say rs. 200000
and insurance cost rs. 10000

Aditya Maheshwari

Aditya Maheshwari (Expert)

15 August 2010 First insurance is capitalised in the car value itself as the car cannot leave the showroom without it and hence the same is a capital expenditure and hence should be capitalised and deprecation allowable on the same u/s 32.

CA Sanat Pyne

CA Sanat Pyne (Expert)

15 August 2010 if any exp is incurred before running of the car will be treated as capital expenditure. So first insurance will be capitalised and your cost of the car will be Rs 210000.00

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 August 2010 Car cannot be put into use ( in the road ) unless insured and insurance premium is paid. Thus "the put into use date" as per the query is 5/10/2009. Therefore, as per my understanding,the assessee is eligible to claim deprectiation at half of the prescribed rate being used for less than 180 Days.

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CA Lokesh Pokharna

CA Lokesh Pokharna (Querist)

15 August 2010 thnx warrier sir u understamd my actual meaning...............

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