bought a new car

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m baul (service) 30 August 2019

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.

pl.suggest

thanks

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Kapadia Pravin 30 August 2019

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

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

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

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/