Depretiation for my car
This query is : Resolved
13 December 2009
I am a businessman by profession, and i am buying a car next week, ie. on mid-december for business purpose. I am purchasing the car on loan. Am i eligible for getting 50% depreciation benefits? Can i claim interest of my car as an official expense? Should i buy the car in my Company's Name or mine ie.(proprietor)? Please Help.
13 December 2009
You can claim depreciation as you explained in the question.
If u use it for the business purpose; then definitely the interest paid by you are business expenditure.
U can purchase car in your own name and claim depreciation because for income tax purpose there is no difference between a proprietory concern and the proprietor. Because I T Return is file one only.
Ca Rakhecha
Surat
If u use it for the business purpose; then definitely the interest paid by you are business expenditure.
U can purchase car in your own name and claim depreciation because for income tax purpose there is no difference between a proprietory concern and the proprietor. Because I T Return is file one only.
Ca Rakhecha
Surat
13 December 2009
No Question if you are using your car in your business that means you can show your car in your balance sheet as Fixed assets & its loan also in it. with this which you will be paying interest & Depriciation, its also you can show & Claim as expenditure in your P&L A/c..
No need to take your car in your firm name if you are a proprietor..
No need to take your car in your firm name if you are a proprietor..
13 December 2009
I read somewhere where it says that the car bought should have a minimum of 180 days as usage to get the depreciation. is it true? or putting the car to use anytime before 1st April will do it?
A big thanks to Rakhecha and Murtaza for your sincere help, thank you sir.
A big thanks to Rakhecha and Murtaza for your sincere help, thank you sir.
13 December 2009
Even if u buy a car on 31st March of the previous year (the year for which you want to claim depreciation); half of the depreciation will be allowed.
13 December 2009
Sir, i didn't get that. if i buy the car and put it to use, though i don't complete 180 days would i get 50% depreciation or half to it? suppose i am buying a car worth 8 lakhs, what is it that i need to do to get the best benefits out of it.
13 December 2009
Hi Subhodeep, if u use the car for 180 days or more u get full year's dep n if the use is less than 180 days then 50% dep can be claimed (even if it is 1 day). Regards,
CA Shakuntala Chhangani
CA Shakuntala Chhangani
13 December 2009
But what is the full years dep %? its 50% i guess? so whats the diff if i am using it for one day or 181 days?
13 December 2009
Dep rate for motor car - 15%
IF USED for less than 180 days - 50% of 15% = 7.5%
IF USED for less than 180 days - 50% of 15% = 7.5%
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