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Car expenses, depreciation, insurance claim

Kollipara Sundaraiah (B.com) (3005 Points)

02 November 2021

car purchase name of person wife.car expenses, depreciation,car insurance expenses claimed husband business account allowed in it act.

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9 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14918 Points)
Replied 02 November 2021

Car invoice should be in the name of Business , and should be in Balance sheet as an asset of the Business therefore above expense may not allowed under IT Act .

CA Aakarsh Jain (CA) (10431 Points)
Replied 02 November 2021

Yes I agreed with prasad Nilugal

Janak Shah (ca) (603 Points)
Replied 02 November 2021

I would suggest that you claim expenses in nature of hire charges for the Car you're using in your wife's account. In that way you can caim expenses even though the car is on your wife's name.

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 02 November 2021

It should be named under business

CA Aakarsh Jain (CA) (10431 Points)
Replied 03 November 2021

Yes....

ABHISHEK (Student) (412 Points)
Replied 03 November 2021

Sec 32 states asset should be owned by assessee, No where mentioned whether assessee should be beneficial owner or legal owner.
*Tax Case (Appeal ) Nos.1261 and 1262 of 2009 and M.P.No.1 of 2009- madras high court allowed dep on bus on the basis of beneficial ownership.

*Civil Appeal No. 5374 OF 1974
[year one nine nine nine] 239 ITR 775 (SC) allowed dep on building on beneficial ownership.

with reference to above, Assessee can claim dep depreciation even if he is not registered owner
but he has to prove the beneficial ownership

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