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Nanju (Querist)
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08 July 2011 Can a salaried person get benefits on interest paid on purchase of a car for his personal use. as though he is paying interest for loan.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 July 2011 Absolutely no.

Nanju

Nanju (Querist)
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08 July 2011 so what is the reason for this & why it can't happen...?

Umesh Aggarwal

Umesh Aggarwal (Expert)
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08 July 2011 income tax law does not allow the same as the salaried person exepenses consider as drawings

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 July 2011 Mr. Chakarpani is right and I agree with him. As regards why. In case of salaried persons there is no provision for allowing interest on car. There is provision for allowing interest on purchase of house. When there is no provision in the act itself then how you can claim the deduction.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 July 2011 Personal expenses is an application of the income earned and not an expense to earn the income and ,therefore, disallowance attracts.

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