Depreciation on car taken on loan
This query is : Resolved
27 September 2012
Dear Sir,
Suppose a Car whose market price is Rs. 5 lacs including insurance, taken on loan and 50000/- paid by owner in cash and remain 4.5 lacs are loan amount.
And Rs. 1 lac paid as car instalment during the FY.
On the 31 March what would be car cost for charging depreciation.
1. Rs. 5 lacs
2. Rs. 1 lac
3. Rs. 1.5 lacs
Please advise me.
Suppose a Car whose market price is Rs. 5 lacs including insurance, taken on loan and 50000/- paid by owner in cash and remain 4.5 lacs are loan amount.
And Rs. 1 lac paid as car instalment during the FY.
On the 31 March what would be car cost for charging depreciation.
1. Rs. 5 lacs
2. Rs. 1 lac
3. Rs. 1.5 lacs
Please advise me.
Pankaj Gupta
(Expert)
27 September 2012
The value of car for the purpose of depreciation will be 5 lakhs minus the amount of insurance charge.
insurance will be allowed as a business expense. while Rs 4.5 lakhs will be the amount of loan to be shown as liability. The interest portion from the amount of installment will be allowed as business expense.
insurance will be allowed as a business expense. while Rs 4.5 lakhs will be the amount of loan to be shown as liability. The interest portion from the amount of installment will be allowed as business expense.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Taxation of crypto futures in India Fy 2026- 2027
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
