I have purchased new car in feb 2021 and old car is sold can i take insurance paid of both car as deduction or only one car is allowed??
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Car Insuranse
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The premium paid for Car Insurance is allowed to be treated as an expense if the car is being used for the purpose of business.
Insurance paid for new car will be capitalized into the cost of the car under fixed assets. You will get depreciation for the new car. however old car insurance expense shall be treated as revenue expenditure.
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