Car loan interest in income tax

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ca ipcc
313 Points Posted on 30 June 2020
One of my client is travel agent. Its proprietorship business. He bought a new car in last FY through loan, now he has cleared the loan. Car is not used for business purpose.

1.My question is should i disclose new car in balance sheet? As, car is not used for business, what if i disclose car in Accounts?

2. Can i take interest paid on loan in P&l A/c?

Awaiting for your reply,

ASHEEQ ABUBAKER
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On 30 June 2020 at 11:22 Report
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Quick Summary
This discussion clarifies whether interest paid on a car loan for a personal vehicle can be claimed as a business expense. It also addresses whether a car not used for business purposes should be included in the company's balance sheet. The consensus is that depreciation and related expenses are only claimable for assets used directly in the business.

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Student
844 Points Posted on 30 June 2020
Not allowed
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On 30 June 2020 at 18:10
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Chartered Accountant
821 Points Posted on 30 June 2020
You get depreciation only on assets used for the purpose of business
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On 30 June 2020 at 18:13

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