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bought a new car

m baul (service)     30 August 2019

m baul
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Dear Sir,

I bought a new car for business as well as personal perpose with bank finance . Can I saw this car in Balance sheet and can I claim depreciation.




Kapadia Pravin   30 August 2019

Kapadia Pravin

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You can show but to the extent %age use towards personal use will be disallowed from expenditure viz. Interest on car loan, Depreciation, Maintenance cost etc


Shivam RC (Student)     30 August 2019

Shivam RC
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Agree with Kapadia Pravin Sir's explanation...

Personal Expenditure cannot be allowed as deduction under Income Tax Act 1961


Giridhar S Karandikar (Team Lead)     31 August 2019

Giridhar S Karandikar
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practically speaking car which is purchased for business purposes is also used for personal purpose as well. so as per usual practice, entire depreciation can be shown for business purposes. however if at all your case comes up for scrutiny you can substantiate by showing that how car is being used for business purposes by producing adequate documents for expenses incurred

DomingoSpear (Owner)     17 September 2019

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You can create Depreciation Reserve under Fixed asset , You can Reduce the value of the car, but you can not claim depreciation if you are not using for Business. In any case, if in the future you need car parts, then look on the boodmo , the same ac compressor could be found there, and the prices there are very good. https://boodmo.com/catalog/3555-compressor/

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