I have a partnership firm (not LLP) in Bangalore with me and my spouse as the two partners. We plan to purchase a car (say for 15 lakhs) under the firm's name.
Now, the firm's account has around 5 lakhs. We do not intend to take a car loan. Can each partner loan 5 lakhs (total 10 lakhs) to the firm and ensure the car is purchased under it's name so that we can show that as an asset and benefit from depreciation, insurance, maintenance costs etc?
Also, how much tax can be saved from the business profits (including car purchases, depreciation, etc) if the above holds good?