Tax deduction
Querist : Anonymous
I have rental income, this year i took a loan and bought a car , would i be able to deduct the intrest i pay for the car in my income tax, or can i claim depreciation for the vehicle , i am woman assesse and have no other income.
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1. Interest : No deduction.
2. Depreciation : No deduction
in your Income-Tax Return.
.
These are available to assessees having income from business or profession.
.
If you have some income of tuition, art work, small trading etc., then you can claim interest and depreciation both.
.
But in these cases also; you have to prove that the car has been used for business or profession exclusively.
.
Otherwise pro-rata interest and depreciation would be allowable.
Querist : Anonymous
can you explain how the pro rata interest and depriciation would be allowed and calculated
Then you have to calculate the petrol expenses in terms of kilometers travelled for business purpose and personal use.
The above criteria is applicable for big companies.
For practical purpose like your case; ITOs generally assess the income on the basis of material available on the face of records and your explanations regarding the expenditure made.
Similar way is adopted for depreciation.
Querist : Anonymous
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