Regarding Insurance Charges of Vehicle owned by relative charged to P&L or Not?

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This query is : Resolved

Quick Summary

This discussion explores whether a son can claim insurance, repair, and maintenance costs for a vehicle owned by his father but used in the son's business. The consensus is that if the son pays these expenses from his own account and uses the vehicle for his business, they are generally claimable as business expenses on his Profit & Loss statement. However, depreciation on the car cannot be claimed by the son.

Jaswinder singh

Jaswinder singh (Querist)

14 December 2024 Respected Colleagues,
Vehicle owned by father but used by son in his business and paid insurance charges by son his current account, now my first ques is whether son will claim insurance charges as expense in P&L and if Repair & Maintenance (petrol, diesel & wear tear) of vehicle also paid by son & claim as expense, then is it in order?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 December 2024 Vehicle used by his son for his business hence the vehicle related all expenses can be claimed by the son.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 December 2024 Vehicle used by his son for his business hence the vehicle related all expenses can be claimed by the son.
Depreciation on car can't be claimed by the son.

Jaswinder singh

Jaswinder singh (Querist)

14 December 2024 Thanku sir
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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 December 2024 You are welcome...
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